BHARAT HARI SINGHANIA vs COMMR. OF WEALTH TAX (CENTRAL) .

The Supreme Court interpreted the Wealth Tax Act, 1957, specifically focusing on Section 3, which imposes wealth tax on individuals and entities based on their net wealth. The Court clarified the definition of 'net wealth' under Section 2(m) and the valuation methods prescribed in Section 7, particularly Rule 1-D concerning unquoted equity shares. The Court upheld the valuation methodology set forth in the rules, emphasizing the importance of accurate asset and liability assessment for tax purposes, thereby affirming the legality of the rules made under Section 46(1).