1986 (10) TMI 75 - AT - Wealth-tax

Summary

Issues: Valuation of jewellery, Application of Board Circular on valuation, Inclusion of CDS amount in total wealth

Valuation of Jewellery:
The case involved a dispute over the valuation of jewellery by the WTO, who added a specific sum to the disclosed value based on price fluctuations of gold and precious stones. The CWT(A) deleted the addition, citing the Board's Circular allowing valuation reports for three years unless there were significant price fluctuations. The departmental representative argued that the Circular did not apply to the assessment years in question. The Tribunal held that the Circular was not applicable beyond specific years and that the price increases justified the addition. The matter was remitted back to the CWT(A) for re-examination without considering the Circular.

Application of Board Circular on Valuation:
The dispute also centered on the application of the Board Circular regarding valuation guidelines. The authorised representative for the assessee argued that the Circular applied to all assessment years or should be extended to subsequent years. However, the Tribunal clarified that the Circular's scope was limited to specific years and that price increases justified valuation adjustments. The Tribunal remitted the matter back to the CWT(A) for fresh examination without applying the Circular.

Inclusion of CDS Amount in Total Wealth:
Another issue was the inclusion of the amount in the CDS account of the assessee in the total wealth. The departmental representative relied on a Special Bench decision, arguing for the inclusion of the deposit amount. The authorised representative cited other Tribunal orders, but the Tribunal followed the Special Bench decision and restored the order of the WTO, including the CDS amount in the total wealth of the assessee.

In conclusion, the Tribunal allowed both appeals, remitting the valuation of jewellery and agricultural land back to the CWT(A) for re-examination without considering the Board Circular and restoring the inclusion of the CDS amount in the total wealth of the assessee based on the Special Bench decision.