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Search Results Judgments > Phrase:WEALTH TAX ACT, 1957 Section 1 Page:8

Feb 16 1994

Bharat Hari Singhania and others etc. etc. Vs. Commissioner of Wealth- ...

  • Decided on : 16-Feb-1994

Court : Supreme Court of India

Reported in : AIR1994SC1355; (1994)118CTR(SC)125; [1994]207ITR1(SC); JT1994(2)SC6; 1994(1)SCALE644; 1994Supp(3)SCC46; [1994]1SCR1033

... 1980 is allowed. 1. The Wealth Tax Act, 1957 was enacted by Parliament providing for levy of wealth tax. Section 3 is the charging section. It levies wealth tax on an individual, Hindu Undivided Family and Company in respect of their net wealth on the corresponding valuation date at the rate or rates specified in Schedule-I. The expression 'net wealth' is defined in Clause (m) of Section 2. In ... shares in private limited companies for the purpose of Section 7 of the Wealth Tax Act?' After discussing the relevant principles and decisions, the learned Judge enunciated the following principles: An examination of the various aspects of valuation of shares in a limited company would lead us to the following conclusion: (1) Where the shares in a public limited company are ... there. (These words were added with effect from April 1,1965.) The question posed by Jaganmohan Reddy, J., speaking for the Bench comprising himself and H.R. Khanna, J. was 'what is the basis of valuation of shares in private limited companies for the purpose of Section 7 of the Wealth Tax Act?' After discussing the relevant principles and decisions, the ... under Section 27(3) of the Wealth Tax Act, the appeals filed by the Revenue against such orders are allowed herewith and the question asked for shall be deemed to have been referred and answered in the terms indicated in this judgment. Correspondingly, the appeals filed by the assessees against orders of the High Courts dismissing their applications under Section 27( ...

Mar 12 1997

Thanthi Trust Vs. Wealth-tax Officer and another

  • Decided on : 12-Mar-1997

Court : Chennai

Reported in : [1999]235ITR621(Mad)

... any return under section 14(1) of the Wealth-tax Act, on the ground that the trust is not liable for payment of any wealth-tax. No notice under section 14(2) of the Wealth-tax Act was also issued. However, a notice was issued on January 21, 1991, under section 16(4) of the Wealth-tax Act, calling upon the petitioner to file a return and also a statement of wealth. In respect ... the assessment years 1956-57, 1958-59, 1960-61 and 1961-62 in the writ petitions filed by the trust. However, the reopening of the assessments for the years 1957-58, 1959-60, 1965-66, 1966-67 and 1967-68 were held to be valid, subject to certain conditions. The said judgment is in Thanthi Trust v. ITO : [1973 ... sections 14(1) and 14(2) cannot be relied on by the petitioners.18. To recapitulate the facts of the present case, notices were issued under section 14(2) of the Wealth-tax Act, requiring the petitioner-trust to file the returns. Whenever they filed nil returns, claiming exemption under section 5 of the Wealth-tax Act, the respondents had issued notices under section 16(2) of the Wealth-tax Act. Section 16 ... auditors of the petitioner-trust, holding that there was violation of section 13(1)(d) of the Income-tax Act and that, therefore, the assessee-trust was not entitled to exemption under section 11 of the Income-tax Act and, consequently, the trust forfeits the exemption under the Wealth-tax Act, by virtue of section 21A of the Wealth-tax Act and proceeded to pass an order of assessment for all the ...

Dec 15 1965

COMMISSIONER OF WEALTH-TAX, PUNJAB Vs. DALMIA DADRI CEMENT LTD.

  • Decided on : 15-Dec-1965

Court : Punjab and Haryana

Reported in : [1967]63ITR158(P& H)

... Wealth-tax Act, 1957 (Act 27 of 1957), came into force on April 1, 1957. In the case of the assessee-company valuation date in the wake of section 2(q) of the Act was December 31, 1956. The Act having come into force on April 1957, the first assessment year under its provisions has been from April 1, 1957 to March 31, 1958 (hence 1957-58). In regard to the assessment of the wealth ... 1956. The appellants argument, however, still remains that section 5(1)(xxi) requires the unit to be established after the commencement of the Wealth-tax Act, namely, April 1, 1957. But the main provision of this section has to be read along with the provisos attached to it. The second proviso to this section says that the exemption provided in section 5(1)(xxi) shall apply to any such company ... to April 1, 1957, and would continue till after April 1, 1957, when five years are completed just as in the case of the proviso in section 45(d) of the Wealth-tax Act. He argues that the computation of the exemption period of five assessment years is independent of the applicability of the exemption itself to a new unit set up after April 1, 1957, which is ... April 1, 1957, when five years are completed just as in the case of the proviso in section 45(d) of the Wealth-tax Act. He argues that the computation of the exemption period of five assessment years is independent of the applicability of the exemption itself to a new unit set up after April 1, 1957, which is provided by the main provision of section 5(1)( ...

May 07 1970

Aluminium Corporation of India Ltd. Vs. Commissioner of Wealth-tax

  • Decided on : 07-May-1970

Court : Kolkata

Reported in : [1972]83ITR386(Cal)

... of the assets on the valuation date, i.e., 31st March, 1957, and his reason was that Section 1(2) of the Wealth-tax Act did not permit the Wealth-tax Officer to make an alteration in the figures of the ... Wealth-tax Act, it appears to us that some allowance has to be made on account of depreciation. That is the proper view of the law and a fair construction of the word ' adjustment' under Section 7(2)(a) of the Wealth-tax Act. We are aware of the fact that Rule 2B of the Wealth-tax Rules, 1957, could not apply to 1957 ... wealth of the company took the value of these assets to be Rs. 5,10,657, Rs. 1,04,74,800 and Rs. 1,78,82,641, respectively, which was according to the value shown in the company's balance-sheet as on the 31st March, 1957, on the ground that the valuation was under Section 7(2) of the Wealth-tax Act ... 1,78,82,641, respectively, which was according to the value shown in the company's balance-sheet as on the 31st March, 1957, on the ground that the valuation was under Section 7(2) of the Wealth-tax Act of the assets of the business as a whole and there was no need to analyse individually the value of particular assets. The Wealth-tax ... Section 29 of the Wealth-tax Act read with Section 27(6) of the Wealth-tax Act. We have already quoted Section 27(6) of the statute. We shall now quote Section 29 of the Wealth-tax Act which, inter alia, reads as follows: '(1) An appeal shall lie to the Supreme Court from any judgment of the High Court delivered on a case stated under Section ...

Apr 16 1973

Lakshmi Kant Jha Vs. Commissioner of Wealth Tax, Bihar and Orissa

  • Decided on : 16-Apr-1973

Court : Supreme Court of India

Reported in : AIR1973SC2258; 1975(0)BLJR242; [1973]90ITR97(SC); (1974)3SCC126; [1973]3SCR973

... open market cannot be deducted.15. The material part of the language of Section 7(1) of the Wealth-tax Act, 1957 is similar to that of Sub-section (1) of Section 36 of the Estate Duty Act which was brought on the statute book earlier in 1953. Sub-section (1) of Section 36 of the Estate Duty Act reads as under :(1) The principal value of any property shall be estimated to be the ... it under Section 27 of the Wealth Tax Act, 1957 (Act No. 27 of 1957) (hereinafter referred to as the Act) against the assessee :(1) Whether in computing the market value of the shares the assessee is entitled to the deduction of a sum of Rs. 2,30,546 by way of brokerage commission; (2) Whether on a true construction of Section 5(1)(viii) and 5(1)(xv) of the Wealth Tax Act, the ... of Section 7(1) of the Act is concerned, in view of its plain language, there is no escape from the conclusion that the expenses in effecting the sale of the asset in the open market cannot be deducted.15. The material part of the language of Section 7(1) of the Wealth-tax Act, 1957 is similar to that of Sub-section (1) of Section 36 of the Estate Duty Act which ... a tax. So far as the construction of Section 7(1) of the Act is concerned, in view of its plain language, there is no escape from the conclusion that the expenses in effecting the sale of the asset in the open market cannot be deducted.15. The material part of the language of Section 7(1) of the Wealth-tax Act, 1957 is similar to that of Sub-section (1) of Section ...

May 30 1983

Royal Calcutta Turf Club Vs. Wealth-tax Officer, "B" Ward VIII and Ors ...

  • Decided on : 30-May-1983

Court : Kolkata

Reported in : 1983(2)CHN53,(1983)2CompLJ345(Cal),(1984)43CTR(Cal)195,[1984]148ITR790(Cal)

... , J.1. 'Net wealth' under the Wealth-tax Act, 1957 (hereinafter referred to as 'the said Act'), means the amount by which the aggregate value computed in accordance with the provisions of the said Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under the said Act, is ... Section 17 of the said Act is in the same line and in terms of Section 148 of the I.T. Act, 1961. Section 14 of the said Act postulates the time-limit within which return should be filed for original assessment proceedings of net wealth and Section 17 specifies the time-limit, within which proceedings for escapement of assessment of net wealth should be commenced. Sub-section (1) of Section ... property in respect of which wealth-tax is not chargeable under this Act; and (iii) the amount of the tax, penalty or interest payable in consequence of any order passed under or in pursuance of the Act, or any law relating to taxation of income or profits, or the E.D. Act, 1953, the Expenditure-tax Act, 1957, or the G.T. Act, 1958, (a) which is ... (1) shall be substituted and the other provisions of the said Act shall be construed accordingly.5. Section 3 of the said Act is the charging section and lays down that subject to the other provisions contained in the said Act, there shall be charged for every assessment year commencing on and from the 1st day of April, 1957, a tax which is referred to as wealth-tax ...

Jul 22 1991

Bal Krishna Binani Vs. Commissioner of Wealth-tax

  • Decided on : 22-Jul-1991

Court : Kolkata

Reported in : [1993]199ITR516(Cal)

... rule should override, abridge or extinguish the provisions of the Act but whether Rule 1D impugned in this petition in fact overrides the Act. According to learned counsel for the petitioner, Rule 1D overrides Sub-section (1) of Section 7 and consequently Section 46(2)(a) also. Thus, it does violate not only Section 7(2) of the Wealth-tax Act, 1957, but also entry 86 of List I of ... Wealth-tax Act, 1957. The other two decisions, viz., CGT v. Smt. Kusumben D. Mahadevia : [1980]122ITR38(SC) and CGT v. Executors and Trustees of the Estate of Late Sh. Ambalal Sarabhai : [1988]170ITR144(SC) were delivered in the context of the provisions of the Gift-tax Act, 1958, and the rules framed thereunder. Though the provision for determining the value of an asset in sub Section (1 ... value of an asset and the definition of net wealth in Section 2(m) which is the subject-matter of charge under Section 3 of the Wealth-tax Act, 1957, is defined as the aggregate value computed in accordance with the provisions of this Act of all the assets. This provision, according to him, brings in Section 7 of the said Act which says that the value of any ... under Section 3 of the Wealth-tax Act, 1957, is defined as the aggregate value computed in accordance with the provisions of this Act of all the assets. This provision, according to him, brings in Section 7 of the said Act which says that the value of any asset, other than cash, shall be estimated to be the price which in the opinion of the Wealth-tax Officer ...

May 03 1991

Commissioner of Wealth-tax Vs. Smt. Janki Kishori Devi

  • Decided on : 03-May-1991

Court : Allahabad

Reported in : (1992)102CTR(All)18; [1991]192ITR229(All); [1991]59TAXMAN206(All)

... section 27 of the Wealth-tax Act, 1957 (hereinafter referred to as the 'Act').'Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the Zamindari Abolition and Relief and Rehabilitation Bonds issued by the State Government of Uttar Pradesh were covered by the term 'security' mentioned in section 5(1)(xxii) of the Wealth-tax Act ... , J. 1. Pursuant to a direction by this court in Miscellaneous Wealth-tax Applications Nos. 1338, 1339, 1340 and 1341 of 1977 by means of the order dated January 16, 1978, the Appellate Tribunal (Income-tax) Allahabad Bench, Allahabad, has stated the case on the following question under section 27 of the Wealth-tax Act, 1957 (hereinafter referred to as the 'Act').'Whether, on ... Act, 1944. The fact that section 2(42C) of the Income-tax Act adopts the definition of the term 'security' as given in section 2(2) of the Public Debt Act, can also be taken aid of in holding that the term 'Government securities' as denned in section 2(2) of the Public Debt Act may be adopted for the purposes of Clause (xxii) of section 5(1) of the Wealth-tax Act ... section 5(1) of the Wealth-tax Act.17. According to section 27 of the U. P. Zamindari Abolition and Land Reforms Act, 1950 (U. P. Act 1 of 1951), every intermediary, whose right, title or interest in any estate was acquired under the provisions of this Act, became entitled to receive and be paid compensation as provided under the Act. The rules made under the said Act ...

May 26 1978

Smt. Rajeshwari Birla Vs. Wealth-tax Officer, 'H' Ward and Ors.

  • Decided on : 26-May-1978

Court : Kolkata

Reported in : [1979]119ITR629(Cal)

... Section 14(2) and the notice need not specify under which clause of Section 14(2) the same has been issued. In that case (head note) :'B. M. Birla created a trust in 1962 for the benefit of his son, G. P. Birla, and the wife and children of G. P. Birla. The trust filed its return under the Wealth-tax Act, 1957 ... Wealth-tax Act, 1957, for the assessment year 1968-69, for which the relevant valuation date was March 31, 1968. The trust held 10,000 shares of C.I.I. Ltd. The value of these shares was stated in the return to be Rs. 1 ... Wealth-tax Officer issued notice to the trust under Section 17 of the Wealth-tax Act for reopening the assessment for the assessment year 1968-69; Thereupon, the trustees of the trust filed an application under article 226 of the Constitution and obtained a rule nisi. It was contended for the petitioners, inter alia, that: (1 ... Wealth-tax Act for reopening the assessment for the assessment year 1968-69; Thereupon, the trustees of the trust filed an application under article 226 of the Constitution and obtained a rule nisi. It was contended for the petitioners, inter alia, that: (1) though the notice did not state that it was under either Clause (a) or Clause (b) of Section 17, the Wealth-tax ...

Apr 24 1989

Wealth-Tax Officer Vs. Manmohan Lal Rais (Huf)

  • Decided on : 24-Apr-1989

Court : Income Tax Appellate Tribunal (ITAT) - Delhi

Reported in : (1989)29ITD47(Delhi)

... 1BB of the Wealth-tax Rules is erroneous ? 1. This is a matter that came to me under Section 24(1) of the Wealth-tax Act, 1957 read with Section 255(4) of the Income-tax Act, 1961 as there is a difference of opinion between the Members, who heard this appeal on the following points: 1. Whether ... 1. Whether the ratio of the judgment of the Hon'ble Delhi High Court in the case of Sharbati Devi Jhalani v. CWT [1986] 159 ITR 549, 559 and 561 indicating the scope of the duties and powers of the Valuation Officer under Section 16A read with Section 7(3) of the Wealth-tax Act, 1957 ... 1986] 159 ITR 549, 559 and 561 indicating the scope of the duties and powers of the Valuation Officer under Section 16A read with Section 7(3) of the Wealth-tax Act, 1957 applies only to the valuation of shares under Rule 1D or whether it will be applicable to the valuation ... 1-D of the Wealth-tax Rules was not mandatory but only directory whereas the Revenue contended that the Rule was mandatory. The High Court after noticing and analysing Section 7, and Section 16A of the Wealth-tax Act and Rules 3B and 1-D of the Wealth-tax Rules came to the conclusion that Rule 1 ... 1-D. The petitioner thereafter moved the High Court by way of a writ and contended that Rule 1-D of the Wealth-tax Rules was not mandatory but only directory whereas the Revenue contended that the Rule was mandatory. The High Court after noticing and analysing Section 7, and Section 16A of the Wealth-tax Act and Rules 3B and 1-D of the Wealth-tax ...

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