1981 TAX. L. R. 282 ::(1980) 17 CurTaxRep 293 ::(1981) 127 ITR 1 ::(1980) 4 Taxman 67

Gujarat High Court

Hon'ble Judge(s): B J Divan , C.J. AND S. B Majmudar , J

Wealth-tax Act (27 of 1957) , S.25(2)— Exercise of jurisdiction under - Order of Wealth-tax Officer in accordance with Board's Circular No. 2 (WT) - - Order, if can be revised under Section 25 (2) by Commissioner on different principles. The legal position is that benevolent Circulars of the Central Board of Direct Taxes are binding on all Income-tax Officers and Wealth-tax Officers as the case may be and on all persons employed in execution of Wealth-tax Act. Even if there be deviation from the law in the Circulars of the Board and the Circulars deviated from the legal position, the Circulars are to be followed by the Wealth-tax Officers, particularly when they are benevolent circulars which will go to the assistance of the assessee. Case law reviewed. 1972 Tax LR 246 (SC), Rel. on. (Para 5 7) The Supreme Court has observed in Mahadeo Jalan's case (reported in 1973 Tax LR 1757) that the principles which have been culled out by it are not hard and fast rules regarding valuation of shares of companies. In view of what has been observed by the Supreme Court, it cannot be said that the methods of valuation laid down by the Central Board of Direct Taxes in its Circular No 2 (WT) D/- 31-10-1967 have been abrogated or nullified by the judgment of Supreme Court in aforesaid Mahade....