TaxTMI 
TaxTMI 
1988 (1) TMI 81
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....wellers called Jewellers Corner holding 55 per cent share therein. The copy of the trading account of the firm of Jewellers Corner in respect of gold disclosed the average selling price of the jewellery at Rs. 924 per 10 gm. The closing stock was value at Rs. 595 per 10 gm. By applying the provisions of rule 2B (2), the Wealth-tax Officer revalued the closing stock at Rs. 790 per 10 gm. and arrived at a difference of Rs. 1,79,985 out of which the assessee's share was worked out to Rs. 98,990. Similarly, in the silver account as against the average sale price of Rs. 1,730 per kg. the closing stock was valued at Rs. 1,240 per kg. Here again by applying the provisions of rule 2B (2) the Wealth-tax Officer re-determined the value of the closing....
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....t in the case of gold jewellery and 25 per cent in the case of silver would be sufficient to bring down the value of the bullion into the alloy state. It was on that basis the value stated above were worked out by her, no doubt, this was on ad hoc basis. The claim of the Revenue was that the Appellate Asstt. Commissioner was not justified in reducing the value of the gold jewellery and silver-ware by those percentages. 4. We have heard the learned Departmental Representative and the learned counsel for the assessee and we are of the opinion that the basis adopted by the Wealth-tax Officer cannot be said to be wholly correct in view of the decision of the Tribunal in the case of WTO v. Gopi Chand Rawat [1983] 5 ITD 667 (Delhi) (TM). The mer....
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.... jewellery could be arrived at by reducing from the market value of the pure gold the percentage attributable to the alloy. No doubt, there in some justification for the supposition but the revaluation of the closing stock cannot be said to be resorted to with reference to the provisions or rule 2B (2). Since the Appellate Asstt. Commissioner has gone on the view that it should be the market value for the closing stock that should be adopted and not the inflated value as worked out by the Wealth-tax Officer, meaning thereby that the value adopted by the Wealth-tax Officer was inflated value, the Appellate Asstt. Commissioner should have brought in proof to show that the market value of the closing stock was much more than what was shown in ....