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TMI Blog1998 (2) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... tioned above. "Whether, on the facts and in the circumstances of the case and on a proper construction of sub-clause (a) of clause (ii) of Explanation II of rule 1D of the Wealth-tax Rules, 1957, the Tribunal was justified in upholding the order of the Appellate Assistant Commissioner who directed the Assessing Officer to deduct only the excess of the tax payable with reference to book profit and not the entire advance tax paid appearing in the balance-sheet?" The basic facts for constituting the reference are that the assessee with their respective different status had unquoted equity shares varying in different number of Steelsworth Pvt. Ltd. and India Udyog Ltd. The Assessing Officer while computing the assessable wealth-tax computed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1981] 129 ITR 46 (Guj) affirmed the order as passed by the Appellate Assistant Commissioner and reiterated its view that for determining the market value of shares according to rule 1D of the Wealth-tax Rules, the advance tax paid under section 210 of the Act and shown on the assets side of the balance-sheet could not be deducted from the tax payable for arriving as to whether the provision of taxation was in excess over the tax payable with reference to the book profit. The appeals preferred by the Revenue were dismissed by the Tribunal. It was at the instance of the Commissioner that the above question along with the statement of case has been placed before this court for its opinion. Incidentally also noting that identical questions of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asset as required by Schedule VI. Clause (i)(a) of Explanation II, however, says that it shall not be treated as an asset. To this extent, it is in favour of the assessee because the assets as shown in the balance-sheet will stand reduced to that extent. Now, clause (ii)(e) says that in case the balance-sheet specifies any amount as 'provision for taxation' in the column of liabilities, the Wealth-tax Officer shall treat only that amount as a liability which is equal to the tax payable with reference to the book profits. Any excess over the said amount shall not be treated as a liability. Sub-clause (e) of clause (ii) while referring to the 'amount representing provision for taxation' qualifies the said words by the words following, viz., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t which is still remaining to be paid shall be treated as a liability on the valuation date. If in the provision for taxation made in the column of liabilities in the balance-sheet, the amount of advance tax already paid is again shown as a liability, it will not be treated as a liability." Having noted the facts as stated by the Tribunal and the question as posed for our opinion, really speaking the question, in view of the aforesaid judgment of the Supreme Court, no longer survives for our opinion, and we remand the matter back to the Tribunal for disposal in accordance with law and in the light of the said judgment, i.e, Bharat Hari Singhania v. CWT [1994] 207 ITR 1 (SC). The reference stands disposed of. A copy of this judgment be tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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