TMI BlogMode of valuing the net wealth of a firm/association i.e. whether the net wealth of a firm is to be determined in accordance with the provisions of the wealth-tax Act or in accordance with commercial principalsX X X X Extracts X X X X X X X X Extracts X X X X ..... tatute: Wealth Tax Act, 1957 Section 4(1)(b) of the Wealth-tax Act provides that in computing the net wealth of an assessee; the value of his interest in a firm of which he is a partner or an association of which he is a member, as determined in the prescribed manner, shall be included. Rule 2 of the Wealth-tax Rules prescribes the manner and mode of valuing a partner's members interest in a pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n parlance. 3. The Madras High Court in the case of Commissioner of Wealth-tax Vs. Vasantha, Executrix to the estate of K.V.A.L.M. Ramanathan Chettiar (87 ITR 17) has held that the words "net wealth" and "valuation date" occurring in Rule 2 of the Wealth-tax Rules have to be understood in the same sense for consideration was whether the assessee's share in the agricultural lands owned by the two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e firm in which the assessee was a partner liabilities (though contested in appeal and outstanding mere than 12 months on the valuation dates) have to be ignoring the restrictions contained in clauses (a) and (b) of section 2 (m) (iii) of the Wealth-tax Act. The High Court held that Rule 2 provides a complete mode for the determination of the net wealth of a firm and the restored contained in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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