9911796707
TMI Blog1987 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... the assets of the company for valuation of its shares in accordance with r. 1D of the WT Rules. The assessee's valuation date is30th Sept., 1978while the balance sheet of the company was prepared as on30th June, 1978. Dividend was, however declared on27th Dec., 1978, i.e, after the valuation date. Therefore on the valuation date there was no legal liability for payment of dividend which it was conceded by the ld. counsel arises only when the declaration of dividend is approved in a general meeting of the company. The first contention, in our view, has no force and has to be rejected. 4. Grounds No. 3 4 are common and challenge the exclusion of advance tax paid by the company from the provision for income-tax for arriving at the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1984) 148 ITR 620 (P H) in which a contrary view has been taken holding that tax payable means the amount of tax worked out on the profits minus the payment made as advance tax. A similar view has been taken in CWT vs. N. Krishnan (1986) 50 CTR (Kar) 75 : (1986) 162 ITR 309 (Kar). Thus there are conflicting views on the subject. In this situation it has been repeatedly held that a view favourable to the assessee should be adopted. Further a Special Bench of this Tribunal has already taken a view in favour of the assessee and we would prefer to follow the same. Accordingly, we hold that the amount of advance tax paid by M/s Eicher Goodearth Ltd. should not be deducted from the tax payable in order to determine the excess of the provision f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought about to show that this has not been correctly worked out. In the circumstances, I do not see any justification for the deduction of Rs. 1,70,000 which alone is responsible for the difference in the two break-up values. The WTO's working is, therefore, upheld." 7. At the hearing before us no arguments were addressed on this point and we are unable to discern any infirmity in the approach of the CWT(A). 8. This ground will therefore, be rejected. "That in arriving at the market value of the equity shares of Goodearth Engines Pvt. Ltd. under r. 1D of the WT Rules, the contingent liability of Rs. 1,71,000 in respect of arrears of dividend on cumulative preference shares should also be considered." No such contention was raised be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
