1971 (8) TMI 21 - SC - Income Tax

Whether liability of company to additional super-tax should be considered in valuation of shares by break-up method - It is a question of law - Tribunal erred in opining that its finding that the additional tax payable under section 23A is deductible is a finding of fact, . Hence the Tribunal was wrong in refusing to refer that question for the opinion of the High Court under section 27(1)

Summary

The Supreme Court allowed the appeals, stating that the High Court erred in not calling for a statement of case from the Tribunal regarding the deduction of additional super-tax in computing the break-up value of shares for wealth-tax assessments. The cases were remitted back to the High Court for further consideration.