9911796707
TMI Blog1984 (4) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ch owns the property and not the assessee. 2. The next dispute relates to the value of the shares held by the assessee in M/s G.K. Sons which was taken by the WTO at Rs. 2,34,990 being the face value thereof. On behalf of the assessee it was contended before the AAC that the market value of these shares should have been determined according to the WT Rules and deduction of 15 per cent should have been allowed as provided for therein. The AAC, however, rejected this contention on the ground that the deduction was allowable only when the valuation was made by the break up method under r. 1D of the WT Rules. In the present case the company was new and the market value of the share could not be different from the face value. This conclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14 ITR 532 (Kar). A contrary view, however, was taken by the Madras High Court in the case of Purushothamdas Gocooldas vs. CWT 1976 CTR (Mad) 361 : (1976) 104 ITR 608 (Mad) wherein it was held that the assessees are not entitled to any deduction on account of their supposed share in the house property owned by the firm of which they were the partners. The representative of the Department also referred to a judgment of the Calcutta High Court in Sarvamangala Properties Ltd. vs. CIT (1973) 90 ITR 267 (Cal) for the proposition that a firm has a distinct entity in the IT Law as against the partners thereof. 5. We, however, find that all the authorities should be deemed to be obsolete in view of the clear-cut language used by the framers of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are specific rr. 1C, 1D and 1E for computing the market value of shares in various kinds of companies for the purpose of s. 7(1) of the WT Act. According to s. 7(1) the market value of any asset has to be determined subject to the rules made in this behalf. We, therefore, accept this ground to the extent that the market value of the shares shall be determined in accordance with these rules and a reduction of 15 per cent as provided for in the rule is to be allowed on the break up value as determined thereunder. The ground is allowed in these terms. 7. Coming to the third ground we find that in the immediately succeeding year the value of the jewellery has been taken at Rs. 2,00,000 whereas in the immediately preceding year the value wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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