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TMI Blog1984 (3) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... s in M/s Chowgule Co. (Hind) Pvt. Ltd. under r. 1D of the WT Rules. 4. In the appeals for the asst. yrs. 1972-73, 1974-75, 1975-76 and 1977-78, the grounds raised are the same as were raised in the appeal for the asst. yr. 1971-72. In the appeal for the asst. yr. 1973-74, only one ground is raised. That ground relates to valuation of the above immovable property. That ground is identical with the first ground in all other appeals. 5. In the cross objection for the asst. yr. 1971-72, only one ground has been raised. That ground relates to the inclusion of the value of silver utensils in the net wealth of the assessee. 6. In the cross objections for asst. yrs. 1973-74 and 1974-75, the ground raised is, in substance, one ground, alt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,25,000 31-3-1973 4,70,140 7,91,000 31-3-1974 5,83,720 8,40,000 31-3-1975 5,83,720 9,00,000 31-3-1976 5,83,720 9,00,000 31-3-1977 5,83,720 9,00,000 9. The WTO adopted the value estimated by the Valuation Officer and substituted the said value in place of the value declared by the assessee. 10. Before the AAC, the ground raised by the assessee was that the WTO had erred in adopting the value of "Datta Prasad" as per report of departmental valuation cell as against the report of the assessee's valuer. This point was disposed of by the AAC in the following words: "........ it appears that the value of the Datta Prasad property was based on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only condition prescribed by the statute for referring the valuation of an asset to a Valuation Officer is the existence of the opinion of the WTO to the effect that the value returned is less than its fair market value. There is no statutory requirement to the effect that the WTO should make a written record of the defects in the valuation report of the registered valuer, which, in his opinion, had existed. What all the WTO is required to do, in order to exercise his authority to make reference to the Valuation Officer, is that he should form an opinion, after considering the registered valuer's report, that the value returned on its basis was less than fair market value. Of course, reference cannot be made at his whim. There should be an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estore the matter to him with direction to decide the same in accordance with law, after giving necessary opportunities to the parties. We direct accordingly. 14. The next question is regarding valuation of shares of M/s Chowgule Co. (Hind) Pvt. Ltd., held by the assessee on the relevant dates. It is not disputed that shares of the said company were not quoted at the Stock Exchange and, as such, the valuation should be made in accordance with provisions of r. 1D of the WT Rules. The assessee and the WTO had made valuation under the said provision. However, they differed on certain points. These points are subject matter of appeals and cross objections, as mentioned in the earlier part of this order. 15. The first point on which ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1969) 73 ITR 53 (SC) followed in decisions of number of High Courts. 17. The point before us is under the WT Act, but the principle would be applicable. That principle is that present value of future liability ascertained on actuarial or scientific basis would represent positive liability and would not be disallowable as a contingent liability. We, therefore, direct the WTO to verify whether the amount of provision for gratuity represents present value of gratuity liability ascertained on actuarial or scientific basis and then treat the same as allowable deduction in computing the value under r. 1D. 18. The next point is whether the amount of advance-tax paid should be deducted from provision for taxation, shown as liability in the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 84,150. The exemption is claimed under s. 5(1) (viii) of the WT Act. The WTO appears to have added Rs. 44,340 with following words; "Silver utensils added here for the remarks in the asst. yr. 1970-71". These remarks have not been brought to our notice. The AAC has observed that w.e.f. 1st April, 1963 no article for personal use or utensils made of gold or silver is exempt as article for person or household use. On that ground, he has rejected the claim. The AAC has also used the word "jewellery", while dealing with this point. We find that no "jewellery" is involved here. 22. The property involved consists of silver utensils. Under the main portion of s. 5(1) (viii), even after retrospective amendment, household utensils and articles ..... X X X X Extracts X X X X X X X X Extracts X X X X
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