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TMI Blog1973 (2) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 14,65,569 and Rs. 15,72,944, respectively. The Wealth-tax Officer determined the net wealth for the first year at Rs. 14,91,678 and for the second year at Rs. 15,77,003. The net wealth of the assessee in those two years included the value of certain shares held by the assessee. The assessee had valued the shares on the basis of their book value on December 29, 1959, and October 19, 1960, respectively. The value of the shares as furnished by the assessee had been originally accepted by the Wealth-tax Officer. Later, the Wealth-tax Officer, in the proceedings for assessment for the year 1961-62 did not accept the value of the shares returned by the assessee on the basis of their book value, but adopted the actual market value as the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer had a discretion to value the shareholding either under section 7(1) based on the market value, or under section 7(2)(a) based on the book value of the shares, and that the Wealth-tax Officer had at the stage of the original assessment having exercised his discretion and adopted the method provided for under section 7(2) for valuing the shares, he cannot change his opinion and seek to value the shares under section 7(1). According to the Tribunal, the Wealth-tax Officer having earlier exercised his discretion to proceed on the basis of section 7(2) by adopting the book value of the shares, which constituted the business assets of the assessee, he cannot by invoking section 17(1)(b) seek to adopt the alternative method provided fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, be said that the said valuation of the shares had not been done in accordance with law. The fact that, later, the Wealth-tax Officer thought that the valuation of the shares by adopting the method provided for in section 7(1) will be beneficial to the revenue is not a ground for invoking section 17(1)(b). The learned counsel for the revenue would contend that section 7(2)(a) will apply to the valuation of the assets of a business run by a partnership, and not of the assets of a business run by an individual. The learned counsel refers to section 7(2)(b), where reference has been made to a company carrying on business. But we are of the view that the said contention has to be rejected outright. Section 7(2)(a) refers to " asset hel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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