COMMISSIONER OF WEALTH-TAX, CALCUTTA, NOWWEST BENGAL II vs TUNGABHADRA INDUSTRIES LTD., CALCUTTA

The Supreme Court held that under Section 7(2)(a) of the Wealth Tax Act, 1957, the Wealth-tax Officer is entitled to adopt the value of fixed assets as shown in the balance-sheet unless the assessee provides material to demonstrate that the written down value is the true value. The Court emphasized that the onus of proof lies with the assessee to establish that the balance-sheet value is artificially inflated. In the absence of such evidence, the values in the balance-sheet should be accepted for wealth-tax assessment.