Commissioner Of Wealth Tax vs Sita Ram Jindal

The Supreme Court addressed four questions regarding the interpretation of Rule 1D of the Wealth Tax Rules, 1957, under Section 127 of the Wealth Tax Act. The Court held that the provisions of Rule 1D are not merely directory, thus overruling the High Court's decision on the second and third questions, which pertained to the valuation of unquoted shares. Consequently, the Court affirmed that the valuation method adopted by the Revenue was correct, leading to the conclusion that the appeals were allowed and the order under appeal was set aside.