1997 (9) TMI 136

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..... pack. In his WT return, the assessee declared the value of such shares and bonds as per report of the registered valuer and the said report was also filed before the AO at the time of assessment proceedings. The AO did not accept the value declared as per the registered valuer's report and made his own valuation and enhanced the value of the unquoted shares of Repropack held by the assessee. 2. On appeal, the Dy. CWT(A) held that the value shown by the assessee was duly supported by the valuation report of the registered valuer who had correctly valued the unquoted shares of Repropack. He accordingly, allowed the appeal of the assessee. 3. Shri S.S. Panver, the learned Departmental Representative submitted that the WTO was justified i .....

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..... o him to decide the question of valuation on his own. Hence, the AO did not act in accordance with the binding Departmental circular and the value as declared by the assessee deserves to be accepted. In support of his contention, he relied upon the judgment of Punjab Haryana High Court in the case of Raj Paul Oswal vs. CWT (1988) 67 CTR (P H) 60 : (1988) 171 ITR 489 (P H). 5. We have considered the rival submissions and perused the facts on records. The vital issue involved in this appeal by the Revenue is with regard to the valuation of right to receive unquoted shares and bonds of Repropack. The value of the said shares and bonds was shown by the assessee as per report of the registered valuer and the said report was also filed befor .....

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..... h company including the notes annexed thereto and forming part of the accounts. Hence, the valuation is in accordance with the rules of Sch. III which has a retrospective application to all pending assessments as per the decision of the Hon'ble Supreme Court in the case of CWT vs. Shravan Kumar Swarup Sons (1994) 122 CTR (SC) 380 : (1994) 210 ITR 886 (SC). Under the circumstances the reliance placed by the learned Departmental Representative on the case of CWT vs. G.M. Abhayankar Ors. (HUF) is of no assistance to the Revenue as the ratio laid down in the said judgment of the Hon'ble Bombay High Court has no application to the facts of the case as that relates to valuation under r. 1D. 7. In the light of the above discussion we declin .....

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