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Interpretation of rule 9A of Schedule III of the Wealth-tax Act, 1957 regarding the requirement of attaching the accountant's certificate with the return of wealth for valuation of shares. Analysis: The case involved a question of law referred by the Income-tax Appellate Tribunal Allahabad under section 27(1) of the Wealth-tax Act, 1957. The issue revolved around the legality of furnishing the accountant's certificate during the assessment proceedings when it is specifically required to be attached to the return of wealth as per the second proviso to rule 9A of Schedule III of the Act for valuing shares. The reference pertained to the assessment year 1991-92. The respondent-assessee had declared the value of shares in her wealth return based on the special provisions of rule 9A of Schedule III. However, the Assessing Officer noted non-compliance with the formalities for exercising the option and demanded an explanation. The respondent later submitted an accountant's certificate dated before filing the return but after the due date. Subsequently, an addition was made to the declared wealth due to non-compliance with rule 9A. The first appellate authority upheld this decision. In appeal, the Tribunal considered the timing of obtaining the accountant's certificate and the procedural nature of attaching it to the return. During the proceedings, the Revenue argued that the certificate should have been attached to the return as per the rule, and its subsequent filing was not justified. However, the court held that attaching the accountant's certificate is a directory, not mandatory requirement. The certificate serves as evidence for the claim under rule 9A and can be filed during the assessment proceedings. Therefore, the Tribunal's decision to allow the benefit of valuing shares on average basis under rule 9A was deemed legal. In conclusion, the High Court answered the question in favor of the assessee, stating that filing the accountant's certificate during the assessment proceedings was permissible under the Act. The decision highlighted the procedural nature of attaching the certificate and emphasized its role as evidence for the claim made by the assessee. The judgment clarified that the certificate's submission timing did not invalidate the entitlement to claim the market value of quoted shares on an average basis under rule 9A of Schedule III.
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