1987 (5) TMI 58

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..... f the value of silver coins. The WTO treated this an asset held by the assessee as on the relevant valuation date (31st March 1972) and made an addition corresponding to the value thereof. The addition was sustained by the first appellate authority. Aggrieved by the same, the assessee has raised a ground. 4. The circumstances under which the addition was made are the following. There was a search of the assessee's premises on 31st March 1975 during the course of which silver coins were found. IT is an admitted fact that the assessee was not able to establish the sources of investment and consequently that was added in his income-tax assessment as undisclosed investment pertaining to that accounting year. When the Revenue has treated this .....

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..... d. There was a credit balance of the appellant in the books of account of Mahal Pictures Pvt. Ltd. The assessee's claim for inclusion of this amount was for two reasons. One is that the Department has allowed deduction of the amount in the hands of Mahal Pictures Pvt. Ltd. It seems Mahal Pictures Pvt. Ltd. claimed deduction of this amount in its assessment wherein the Revenue held that was not a genuine expenditure. The other reason was that the assessee is following cash system of accounting for his professional income and since he has not received the same, it is not includible in his net wealth. The latter submission can be rejected as merit less in view of the decision of the Supreme Court in the case of CWT vs. Vyasaraju Badrinarayan M .....

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..... sold in the open market. For the Revenue, Sri Raj Kisore contended that the difference in the method of accounting should not change the method of valuation since such claim are taken at the face value as show in the balance sheet in the case of a company. 10. We have considered the rival submission. What is taxable is the value of the asset. In the present case, the right to receive the professional fees is the asset sought to be included. Therefore the value of this right has to be included in the net wealth and can be ascertained only if the right is sold in the open market. The WTO had not considered the case from this angel. In certain cases, the value of the right may be considered as the amount due. There may be cases where the r .....

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