Act/Law wise: Judgment of Supreme Court of Bangladesh (AD & HCD)



Wealth Tax Act (I of 1977)
Section/Order/ Article/Rule/ Regulation Head Note Parties Name Reference/Citation
Section 7(1)(2)

Computation of the Value Assets.
Section 7 of the Wealth Tax Act (I of 1972) gives the power to the Wealth Tax Officer for computation of the value of the assets and it is divided into two sub-sections (1) and (2) but if he does the one he must follow the rules framed for the purpose. Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. (1982) 34 DLR (AD) 93.

Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. 34 DLR (AD) 93
Section 7(2)(a)

Wealth tax—Assessrnent----Wealth Tax officer can take recourse to one of the methods of valuation, but not both—When bulk valuation of the net wealth of a company is adopted it. is not permissible to value some of the assets separately on the plea of making adjustment.
The only question was whether to value the shares from the book value or maket value. The Wealth Tax Officer having made. The bluk valuation, which could only be done under sub-rule (9). of Rule 8, attempted to value the shares on the market price which is authorised under sub-rule (2)—He could not do it both ways—The legislative scheme does not provide for such assessment—The discretion that is given by the “as the circumstances may require” occurs in sub-section (2) and not for sub-section( I). The Wealth Tax Officer in computing under Section 7(2) cannot take recourse to the discretion given by the expression “as the circumstances may require’ for computing it under section 7(1). Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. 2BLD (AD) 21

Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. 2 BLD (AD) 21