1980 (5) TMI 73 - AT - Wealth-tax

Summary

Issues: Valuation of jewellery for assessment year 1976-77

Analysis:
The dispute in this case revolves around the valuation of jewellery for the assessment year 1976-77. The assessee had jewellery weighing 17,767 grams on the valuation date, with a value declared at Rs. 9,20,640. However, the WTO valued the jewellery at Rs. 10,64,684, based on a rate of Rs. 532 per ten grams. The primary contention raised by the assessee was that some other metal was mixed with the gold in the jewellery, and therefore, deduction on account of this mixture should have been allowed. The assessee's argument was supported by the approved valuer's report, which indicated that labour charges were not included in the valuation. The counsel for the assessee contended that labour charges, amounting to 15% of the gross weight of the jewellery, should have been added to the valuation. It was observed that the labour charges were not considered by the WTO, leading to an incorrect valuation. The assessee further argued that the deduction on account of the mixture should be separate from the labour charges, as the deduction would be higher than the labour charges. The Tribunal agreed with the assessee's submissions and directed the WTO to compute the deduction at 15% of the jewellery's weight and add labour charges of Rs. 50,000 to the assessment, ensuring that the final valuation does not fall below the declared value.

Outcome:
The appeal was partly allowed, with the Tribunal directing the WTO to recompute the valuation of the jewellery by including the labour charges and ensuring that the total valuation is not lower than the amount declared by the assessee.