Enquiries while valuing the articles u/s 5(1)(viii) of the Wealth-tax Act, 1957. - Income Tax - 425/CBDT

INSTRUCTION NO. 425/CBDT Dated: June 14, 1972 Section(s) Referred: 5(1)(viii) Statute: Wealth Tax Act, 1957 Attention of the Commissioners is invited to Board's Circular No. 75 dated the 22nd February, 1972 issued from F.No. 317/3/72-W.T. Wherein the Board desired that you may impress upon all the Officers in your charge to keep in mind the Finance Minister's observations, made during the course of the debate on the Budget for the year 1971-72, so as not to enter into pettifogging enquiries while valuing the articles mentioned in the proviso to clause (viii) of sub-section (1) of Section 5 of the Wealth-tax Act, 1957. 2. The Board have considered the question of determining the quantum of silver, etc. in the household utensils including cutlery, which are sold commercially, for the purposes of valuation of such articles for computation of the net wealth of the assessee. In such cases it is for the assessee to determine the value of such contents and for that purpose he should make a reasonable estimate based, if necessary, on expert advice. If, having regard to the circumstance of the case, the Wealth-tax Officer finds the estimate made by the assessee himself is prima facie, reasonable there should be hardly any occasion to insist for further information and evidence in the matter. Ordinarily, in such articles, the quantity of gold and silver may be very little and unless there is adequate material to suspect the officers need not be meticulous in trying to determine the extent of the precious metal content. 3. The contents of the above instructions may kindly be brought to the notice of all the officers working in the charge and compliance should be ensured.