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TMI Blog1996 (11) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... e insurance value as the value of the motor cars for the purposes of computing the net wealth of the assessee. The CWT(A) did not find any reason to interfere with the action of the Assessing Officer. He held that evidently the written down value of a motor car under the Income-tax Act is not indicative of its market value as on the valuation date. According to him, the Assessing Officer had proceeded on a reasonable basis to estimate the value of the motor cars on the basis of their insured value during the relevant period. The assessee is in appeal before us. 3. The learned counsel of the assessee submitted that for the purposes of adopting the value of the motor car the provisions of sub-rule (2) of rule 14 of Schedule III would be app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and considered their rival submissions. Rule 14 of Schedule III, which is relied upon by the parties, reads as under : " 14. (1) Where the assessee is carrying on a business for which accounts are maintained by him regularly, the net value of the assets of the business as a whole, having regard to the balance sheet of such business on the valuation date after adjustments specified in sub-rule (2) shall be taken as the value of such assets for the purposes of this Act. (2) For the purposes of sub-rule (1)-- (a) the value of any asset as disclosed in the balance sheet shall be taken to be-- (i) in the case of an asset on which depreciation is admissible, its written-down value ; (ii) in the case of an asset on which no depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to clause (b). This clause provides that if the value of any such asset is determined in accordance with the provisions of this Schedule as applicable to that particular asset or if there are no such provisions as determined in accordance with rule 20, exceeds the value as determined under clause (a) by more than 20 per cent, then the higher value is to be taken as the value of the asset. The assessee's contention that rule 14(2)(a) itself is a rule for estimating the value of the motor car and it is the written down value ; the motor car being an asset on which depreciation is admissible and, therefore, there is no question of adopting the higher value, in our opinion, has no force. Clause (a) to sub-rule (2) of rule 14, provides for a g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of rule 20. Therefore, the words "determined in accordance with provision of this Schedule as applicable to that particular asset" has to be given a meaning as provision other than as provided under clause (a) to rule 14(2). 8. A question was raised by the learned counsel of the assessee that the clause (b) to rule 14(2) applies only to those assets which are not covered by rules 3 to 19 and therefore an asset covered by rule 14(2)(a) is not subject to this rule. This contention of the assessee, in our opinion, would have a force, had the provisions of rule 14(2)(b) were not there. The difference of the written down value and the insurance value being more than 20 per cent, in our opinion, the higher value is to be adopted as the val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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