Commissioner Of Wealth-Tax vs Hari Shankar And Brothers

The Supreme Court held that the potential value of land cannot be included in its assessment for taxation purposes, referencing the principles established in CIT v. Ashima Sinha [1976] 116 ITR 26. The Court emphasized that the valuation must adhere to the provisions of Rule 1BB of the Wealth-tax Rules, 1957. Consequently, the appeals were allowed, and the Tribunal was directed to refer the question to the High Court for consideration.