1980 (7) TMI 137 - AT - Wealth-tax

Summary

Issues:
1. Valuation of share of property in Shri Kamakhya Rice Mills Trust taken as 'protective measure'
2. Valuation of jewellery and exemption claim under s. 5(1)(xxxii) of the Act
3. Claim for deductions in lieu of tax liability

Detailed Analysis:
1. The judgment involves a group of appeals by assessees concerning the valuation of the share of property in Shri Kamakhya Rice Mills Trust taken as a 'protective measure.' The appeals share common issues, and the Tribunal is addressing them collectively for convenience. The valuation of the share was done without detailed discussion or reasoning, leading to discrepancies in the assessed wealth compared to the declared wealth for various assessment years.

2. The valuation of jewellery and exemption claims under s. 5(1)(xxxii) of the Act were contentious issues. The valuation of jewellery was estimated without a proper basis, and exemption claims were dismissed due to lack of details and the nature of assets not being industrial undertakings. The Tribunal directed the authorities to reevaluate these aspects based on merits and in accordance with the law.

3. The claim for deductions in lieu of tax liability was another significant issue. The lower authorities had rejected these claims as the tax liability was not quantified. The Tribunal, considering the precedent set by the Supreme Court, directed a fresh assessment of these claims, emphasizing that income-tax and wealth-tax liabilities should be treated as present liabilities, subject to quantification, and the assessees should be given a fair opportunity to substantiate their claims.

Overall, the Tribunal set aside the lower authorities' orders on various grounds, including the valuation of assets, exemption claims, and tax liability deductions. The cases were remanded to the assessing officer with specific directions to reevaluate these aspects in accordance with the law, ensuring a fair and proper assessment based on concrete evidence and giving the assessees a reasonable opportunity to present their case. The appeals by the assessees were deemed allowed for statistical purposes.