Wealth tax---

---- Valuation of assets---Valuation of unquoted equity shares of company-- Rule 1-D, Indian Wealth Tax Rules, 1957 is directory---Value is to be arrived at by adopting yield method---Indian-Wealth Tax Act, 1957, S.7---Indian Wealth Tax Rules, 1957, R.1-D.

Rule 1-D of the Indian Wealth Tax Rules, 1957, is only directory and not mandatory.

In valuing the unquoted equity shares of a company for purposes of wealth-tax, the value is to be arrived at by adopting the yield method.

CWT v. S. Jindal (1992) 194 ITR 539 (Kar.) fol.

H. Raghavendra Rao and M. V. Seshachala for the Commissioner.

K.S. Ramabhadran for the Assessee.

JUDGMENT

K. SHIVASHANKAR BHAT, J: --The questions referred to us under section 27 of the Wealth Tax Act, 1957, read thus:

"(1) Whether, on the, facts and in the circumstances of the case, the Appellate Tribunal is right in law in confirming the orders of the first appellate authority who directed the Wealth Tax Officer to value the unquoted equity shares held by the assessee by adopting only the yield method?

(2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that rule 1-D of the Wealth Tax Rules, 1957, is not mandatory?"

These questions are to be answered in the affirmative and against the Revenue following the decision of this Court rendered in CWT v. S. Jindal (1992) 194 ITR 539.

Mr. Ramabhadran learned counsel is permitted' to file his vakalath within a month from today.

M.BA./17/T.FReference answered.