9911796707
TMI Blog1992 (2) TMI 159X X X X Extracts X X X X X X X X Extracts X X X X ..... in the Department's appeal relates to the applicability of r. 2B(2) of the WT Rules, 1957, relating to adjustment in the value of an asset disclosed in the balance sheet, on the basis of the rule as it stood prior to its omission by the WT (Second Amendment) Rules, 1989[(1989) 77 CTR (St) 23] w.e.f. 1st April, 1989. The firm values its closing stock at cost price in terms of r. 2B(2), the WTO took the view that the market value of the closing stock was more than 20 per cent of the value as declared by the assessee on the basis of cost price, additions had to be made. The following table would show the relevant details in that regard: Assessment year Value of closing stock as declared by M/s P.V. Jewellers at cost price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dditions were made for the asst. yrs. 1977-78 and 1978-79 when the gross profit rates declared by M/s P.V. Jewellers were 25.6 per cent, 27.5 per cent. For the asst. yr. 1979-80 when the gross profit rate declared was 27.1 per cent the addition made by the WTO was deleted by the AAC and the Department did not go up in appeal before the Tribunal. For the asst. yr. 1981-82 and 1983-84 also, no additions were made. It may be notices that for the asst. yr. 1983-84, the gross profit rate declared by M/s P.V. Jewellers was only 23.8 per cent. Therefore, not only on account of the decisions of the Tribunal in the cases of the other partners, but also in the assessee's own case the own conduct of the Department in making no addition for certain yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions have been heard and duly considered. There is sufficient material on the record for upholding the claim made by the assessee under s. 5(1)(xxxii). Firstly, we find that in the case of the other two partners, the deduction under s. 5(1)(xxxii)had been granted by the Dy. Commissioner(A) for the asst. yr. 1973-74 and no appeal was filed to the Tribunal. For the asst. yr. 1975-76, the WTO had only party allowed the deduction which was fully allowed by the AAC and confirmed by the Tribunal. For the asst. yr. 1976-77, the claim had been rejected by the WTO but allowed by the AAC which was confirmed by the Tribunal. For the asst. yrs. 1977-78 and 1978-79, the WTO himself had accepted the claim. So far as the assessee's own case is concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16th Aug., 1984 of this Bench in ITA Nos. 211 and 212/Jp/84 for asst. yrs. 1978-79 and 1979-80 in the case of M/s M.D. Kewellers was also filed in which cases the Bench had made local inspection on 18th July, 1984. The Bench had held in that case after examining the whole procedure that the claim was justified. The procedure followed in this case was the same as is said to be followed by the assessee in the present case and for which a very detailed reply dt. 28th July, 1989 had been filed before the WTO for the asst. yrs. 1981-82 and 1982-83, in response to the WTO's letter dt. 20th July, 1989. On the basis of this overwhelming evidence, we are of the clear view that the firm M/s P.V. Jewellers owns an industrial undertaking in terms of s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant valuation dates as determined in the respective assessment orders as liabilities are to be deducted even though those assessment orders are finalised after the valuation date. It is the quantification of the tax liabilities by the ultimate judicial authority which will determine the amount of the debt owed by the assessee on the valuation date. So long as such ultimate determination indicates the existence of a positive tax liability, there is a debt owed by the assessee on the valuation date, even though such determination may be self-sufficient in point of time to the valuation date. In view of the above, the claim made by the assessee is accepted and the WTO is directed to compute the net wealth-tax of the assessee in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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