1973 (11) TMI 40 - HC - Wealth-tax

Summary

Issues:
1. Exemption of the value of 12 jeeps and trucks under section 5(1)(ix) of the Wealth-tax Act.
2. Inclusion of the amount of Rs. 1,09,201 in the net wealth of the assessee.
3. Valuation of gold under the Gold Control Order.

Analysis:

Issue 1:
The Tribunal accepted the assessee's claim regarding the exemption of Rs. 25,000 for 12 vehicles used for agricultural purposes under section 5(1)(ix) of the Wealth-tax Act. The department failed to prove otherwise, leading to the conclusion that the assessee was entitled to the relief.

Issue 2:
The Supreme Court decisions in Pandit Lakshmi Kant Jha v. Commissioner of Wealth-tax and Ahmed G. H. Ariff v. Commissioner of Wealth-tax established that the right to receive compensation is considered an asset under the Wealth-tax Act. The Tribunal's decision was upheld, emphasizing that the right-holder's entitlement to compensation, even if not fully realized, constitutes an asset for valuation purposes.

Issue 3:
Regarding the valuation of gold under the Gold Control Order, the Tribunal did not adequately consider the impact of the Order on determining the market value of gold. The High Court directed the Tribunal to provide a better statement of the case to assess whether the price of gold for legal sale should determine its market value or if the newspaper quoted price should prevail. Further clarification was sought to determine the question of law satisfactorily.