9911796707
TMI Blog1996 (8) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... valuation date, the profits of five completed years immediately preceding the valuation date, should be taken into account when the Tribunal itself in W. T. As. Nos. 554, 555 and 556/(Cal) of 1980, in the case of Manmohan Thapar, dated 28th February, 1992, held that the profit of the accounting period ending with the valuation date is to be included for finding out the average profit for this purpose ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the five year period as mentioned in the Central Board of Direct Taxes' Circular No. 332A, dated 31st March, 1982, should be counted by excluding the accounting year ending with the relevant valuation date ? " The facts leading to this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In such circumstances, the Commissioner of Wealth-tax, (Central-II), Calcutta, sought reference and it is in this background that the Tribunal has referred the abovequoted questions to this court for answer. Learned counsel appearing for the assessee urged that in fact, questions Nos. 1 and 2 are overlapping questions and the question involved is the interpretation of paragraph 4(i) of the Central Board of Direct Taxes' Circular No. 332A, dated March 31, 1982. However, this has been disputed by learned counsel for the Revenue. According to him, these are two different questions which are required to be answered separately. We have considered the matter and find that, in fact, both the questions are overlapping questions and in both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of this Act, means the financial year immediately preceding the assessment year. . . ." From the above definitions, it is abundantly clear that the valuation date as per the Wealth-tax Act in relation to any year means the last day of the previous year as defined in section 3 of the Income-tax Act. Therefore, the year cannot be taken as completed on the valuation date and thus where a reference is made to any year immediately preceding the valuation date, it is to be taken as a completed year. Therefore, while interpreting paragraph 4(i) of the Central Board of Direct Taxes circular, the year pertaining to the valuation date necessarily has to be excluded while computing five years. In view of this, we answer the question in the affirma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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