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TMI Blog1969 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... respective valuation dates the Wealth-tax Officer proceeded under section 7(2)(a) of the Act and included the full value of the fixed assets as shown by the respondent in the respective balance sheets without any adjustments, after rejecting its contention that the fixed assets should be assessed at their written down value as computed for the purposes of income-tax. In the assessment order for 1957-58 the Wealth-tax Officer gave his reasons as follows: " The assessee claimed that since the full amount of depreciation which was admissible under the Income-tax was not provided in the balance sheet the amount of depreciation not provided for earlier should now be deducted from the value of the assets in order to arrive at the net wealth. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the original cost in a scientific and systematic manner with due regard to the nature of the asset. Therefore, the written down value as determined in the income-tax assessment may be taken as the fair index of the net value of the business assets in most cases... It cannot however be laid down as an inflexible rule of law that in every case the written down value must be taken to be the net value of the business assets. If that were so, the legislature would have said so in clear terms instead of indulging in the circumlocution in section 7(2)(a). In this particular case, it appears, the assessee did not make any reserve for depreciation and the assets are old, dating back from the inception of the business long ago. In these circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch business as on the valuation date and making such adjustments therein as the circumstances of the case may require . . . . .." In Kesoram Industries & Cotton Mills Ltd. v. Commissioner of Wealth-tax the appellant company had shown in its balance-sheet for the period ending March 31, 1957, the appreciated value on revaluation of its assets, after making certain adjustments, at Rs. 2,60,52,357 and had introduced in the capital reserve surplus a corresponding balancing figure of Rs. 1,45,87,000 representing the increase in the value of the assets upon re-valuation. For the purposes of wealth-tax the Officer took the sum of Rs. 2,60,52,357 as the value of the assets, whereas the company contended that an adjustment ought to be made in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Wealth-tax Officer may determine the net value of assets of the business as a whole, having regard to the balance-sheet of such business as on the valuation date and make such adjustments therein as the circumstances of the case may require. The power conferred upon the tax officer to make adjustments as the circumstances of the case may require is also for the purpose of arriving at the true value of the assets of the business. It is of course open to the assessee in any particular case to establish after producing relevant materials that the value given of the fixed assets in the balance sheet is artificially inflated. It is also open to the asseesee to establish by acceptable reasons that the written down value of any particular asset ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case may be to pass such orders as are necessary to dispose of the case conformably to such judgment. This clearly imposes an obligation upon the Tribunal to dispose of the appeal in the light and conformably with the judgment of the Supreme Court. Before the Tribunal passes an order disposing of the appeal there would normally be a hearing. The scope of the hearing must of course depend upon the nature of the order passed by the Supreme Court. If the Supreme Court agrees with the view of the Tribunal the appeal may be disposed of by a formal order. But if the Supreme Court disagrees with the Tribunal on a question of law, the Tribunal must modify its order in the light of the order of the Supreme Court. If the Supreme Court has held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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