Section 7(1)(2)
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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.
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Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. |
34 DLR (AD) 93 |
Section 7(2)(a)
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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
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Commissioner of Income Tax, Dacca Vs. Adamjee Sons Ltd. |
2 BLD (AD) 21 |