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TMI Blog1978 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... sment years 1969-70 and 1970-71, the original assessment was completed on 26th October, 1970. The officer reopened them on the ground that certain wealth had escaped assessment. The assessee filed returns under protest. The WTO passed a fresh assessment order on 9th March, 1973. In this he, inter alia, enhanced the value of shares of M.P. Sugar Mills owned by the assessee. He adopted the method pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res. On the merits the Tribunal agreed with the assessee's submission that the depreciation reserve was liable to be added to the liabilities while computing the valuation of the shares under sub-cl. (c) of cl. (2) of the second Explanation to r. 1D, W.T. Rules. On this view, the Tribunal directed the WTO to correct the amount of the liability. At the instance of the CWT, the Tribunal has referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause of this Explanation categorises the kinds of liabilities in the balance-sheet which are not to be treated as liabilities for the purpose of this computation. Clause (c) mentions : " (c) reserves, by whatever name called, other than those set apart towards depreciation." It is evident that reserves set apart towards depreciation are to be excluded from the operation of cl. (2)(c). In othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1970] 75 ITR 373 (SC) in support of his submission that once the proceedings were reopened, the entire assessment was at large and the WTO was justified in looking into even such items which had escaped assessment in the initial stage. Since the question has become academic in the present case, we return the same unanswered. We, therefore, answer question No. 2 in the affirmative, in favour of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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