2001 (1) TMI 2 - SCH - Wealth-tax

Whether Tribunal was right in law in holding that for purposes of computation of the intrinsic value of unquoted shares u/r 1D the amount of advance tax paid by the company and shown on the assets side of the balance-sheet should not be deducted from the tax payable in determining whether the provision for tax was in excess over the tax payable with reference to the book profits in accordance with the law applicable thereto - question is answered in favour of the Revenue

Summary

The Supreme Court allowed civil appeals in favor of the Revenue regarding the computation of intrinsic value of unquoted shares for wealth tax purposes. The High Court's decision was overturned based on the Bharat Hari Singhania v. CWT case, replacing the earlier L. G. Balakrishnan v. CWT ruling. No costs were awarded.