9911796707
TMI Blog1985 (9) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Gulabchand Bader, and in Wealth-tax Reference Petition No. 221 of 1985, the assessee is Shri H. C. Bader. Smt. S. K. Bader and Gulabchand Bader are partners of M/s. K. D. Jhaveri, Jaipur, which carry on the business of purchase and sale of precious and semi-precious stones both in India and abroad. Shri H. C. Bader, the assessee, in W.T. Reference Petition NO. 221 of 1985, is partner of the firm, M/s. Cosmopolitan Trading Corporation, Jaipur, which also carries on the business of export of precious and semi-precious stones. In so far as the assessees in W.T. Reference Petitions Nos. 213, 214 and 217 of 1985 are concerned it has been stated that in respect of the assessment year 1974-75, M/s. K. D. Jhaveri declared a closing stock of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D. Jhaveri, Jaipur, and then making the additions on pro rata basis. The Revenue filed appeals against the aforesaid orders of the Appellate Assistant Commissioner before the Income-tax Appellate Tribunal and the said appeals were disposed of by the Tribunal by order dated December 31, 1983. The Tribunal agreed with the Appellate Assistant Commissioner that the export invoice value could not be the basis for determining the market value of the stock, because the goods did not fetch the export invoice value in the foreign markets. According to the Tribunal, it will be reasonable if the fair market value of the closing stock was arrived at by making a deduction of. 35 per cent. from the export invoice value. The Tribunal found that if deduct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's net wealth under rule 2B(2) of the Wealth-tax Rules ? 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that M/s. Cosmopolitan Trading Corporation, Jaipur, is an industrial undertaking and as such the assessee is entitled to exemption under section 5(1)(xxxii) of the Wealth-tax Act, 1957 ? By order dated August 30, 1984, the Tribunal declined to refer questions Nos. 1, 2 and 3 and has referred question No. 4 to this court. Thereupon the Revenue has filed D.B. W.T. Reference Petitions Nos. 213, 214 and 217 of 1985. In so far as the D.B. W.T. Reference Petition No. 221 of 1985 is concerned, it relates to the assessment year 1974-75. In this case, the firm of which the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el appearing for the Revenue, argued in support of all the petitions and has urged that the Tribunal was in error in refusing to refer questions Nos. 1, 2 and 3 on the view that the said questions relate to pure findings of fact given by the Tribunal. In this connection, with reference to question No. 2, Mr. Surolia has submitted that the finding of the Tribunal making a deduction of 35% in the export invoice value of the goods in stock is perverse and based on no evidence. It may be stated here that question No. 1 which the Revenue is seeking to be referred to this court does not raise the question that the finding recorded by the Tribunal giving a deduction of 35 per cent. in the export invoice value is perverse and based on no evidence. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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