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TMI Blog1986 (5) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... vant valuation dates, the assessee held 160 equity shares of Skefe-Co. India Bearing Co. Ltd. The shares of the said company were not quoted at the stock exchange. Consequently, the valuation had to be done in accordance with the provisions of rule 1D of the Wealth-tax Rules, 1957 ('the Rules'). The assessee in his computation under the said rule did not treat the amount of advance tax paid by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the AAC relying on the decision of his predecessor for the earlier assessment year accepted the computation made by the assessee. The department has now come in appeals before us. 2. The assessee did not appear before us. We have heard the learned departmental representative. We find that the computation made by the assessee is in accordance with the principle laid down by the Gujarat High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile considering a slightly different question has disapproved the view of the Gujarat High Court in Arvind Chinubhai's case. In CIT v. Hoechst Pharmaceutical Ltd. [1984] 149 ITR 94, the Bombay High Court while dealing with the balance sheet in connection with the computation of relief under section 80J of the Income-tax Act, 1961 held that it is only the net liability regarding payment of tax whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax paid is not treated as assets under clause (i)(a) of Explanation II, the provision regarding taxation should be reduced by the amount of advance tax paid in order to determine the extent of excess over the tax payable in accordance with the book profits under clause (ii)(e). The computation made by the WTO was, therefore, correct while the computation made by the assessee was not correct. We, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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