COMMISSIONER OF WEALTH TAX vs HINDUSTAN MOTORS LIMITED

The Supreme Court held that under Section 7(1) and Section 7(2) of the Wealth Tax Act, 1957, the value of an asset is determined by its market value, and if the balance sheet does not reflect the true value of the assets, the onus is on the assessee to provide evidence for a reduced value. The Court clarified that mere claims of inadequate depreciation due to lack of profits are insufficient to meet this burden. The judgment of the High Court was set aside, ruling against the assessee's claim for a reduced asset valuation.