TMI Blog2002 (8) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... e the revival of the appellate order but we do not approve of that order either because though the actual cost of the films is undoubtedly is a relevant factor, it is not the be all and end all of the matter in the matter of valuation of the films. In our opinion, therefore, the matter will have to be re-heard and decided by the Tribunal and the Tribunal would then decide the question of valuation - - - - - Dated:- 7-8-2002 - Judge(s) : V. S. SIRPURKAR., N. V. BALASUBRAMANIAN. JUDGMENT The judgment of the court was delivered by V. S. SIRPURKAR J. -The question referred to us in pursuance of the direction of the High Court in T. C. No. 41 of 1990, at the instance of the applicant, is as follows: "Whether on the facts and circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as liable to be partly allowed while the cross-objection filed by the assessee was liable to be dismissed. While dealing with the assessee's cross-objection, the Tribunal observed that the valuation could not be taken as nil merely because the films had been exploited because it was likely that on their re-run, the films could make a better business. Therefore, the mere fact that the films had run for 90 days could not by itself be sufficient to come to the conclusion that the films had become worthless and on their re-run, they may not fetch any business. The Tribunal, therefore, came to the conclusion that merely because in the income-tax proceedings hundred percent deduction was given, it could not be held that the films could not be val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch films which would be synonymous with the price paid by a willing purchaser in the open market. In this view of the matter, we direct that the actual collections made from these films on the next valuation date would very well represent the potential market value of the films lying in stock and that should be substituted for the valuation directed by the Commissioner (Appeals). Accordingly, the order of the Commissioner (Appeals) is modified and the Wealth-tax Officer is directed to adopt the actual collection for the purpose of inclusion in the net wealth." It will be seen that the Commissioner while fixing the valuation had directed to value the films at the cost price and reduce that value by 50 percent due to depreciation of value b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Wealth-tax Act that for the purposes of the Act, the relevant date for the valuation shall be the last date of the previous year of the relevant assessment year. As against this, learned counsel for the Department tried to support the order by suggesting that the Tribunal had correctly remanded the matter for the purposes of valuation because the actual collections made on the next date would be the only factor to correctly evaluate the film. On this backdrop of the rival contentions, it must be said that the Tribunal had undoubtedly taken into consideration the next valuation date which would be clear from the emphasised portion which we have quoted above from the Tribunal's order. There can be no doubt that for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date than its actual value which was on the valuation date. Even that would be totally incorrect and contrary to the spirit of section 3. Therefore, it is not possible for us to uphold the order of the Tribunal. The test suggested by the Tribunal more particularly with reference to the date of valuation tends to be arbitrary. We, therefore, answer the question against the Revenue and in favour of the assessee. As a result of this, the natural consequence would be the revival of the appellate order but we do not approve of that order either because though the actual cost of the films is undoubtedly is a relevant factor, it is not the be all and end all of the matter in the matter of valuation of the films. In our opinion, therefore, the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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