1990 (8) TMI 85 - HC - Wealth-tax

Summary

The High Court of Rajasthan ruled that gratuity liability cannot be deducted while valuing unquoted shares for wealth tax purposes. The decision was based on a previous unreported judgment and rejected the argument that gratuity should be considered an ascertained liability. The court held that provision for gratuity is contingent and not deductible, following the principle applied to company cases. The judgment favored the Department and denied the deduction of gratuity.