ORDER SHEET ITA No. 199 of 2002 IN HIGH COURT AT CALCUTTA SPECIAL JURISDICTION (INCOME TAX) ORIGINAL SIDE SMT. INDIRA TIBREWAL Versus C. I. T., SILIGURI BEFORE: Hon'ble JUSTICE GIRISH CHANDRA GUPTA Hon'ble JUSTICE ARINDAM SINHA Date : 13th January, 2015. Appearance : Mr. J. P. Khaitan, Sr. Adv. Mr. Sanjoy Bhowmik, Adv. Mr. C.S. Das, Adv. for appellant Mr. S. Mukherjee, Adv. for respondent. Court : When appeal was admitted following question of law was framed :- Whether on proper interpretation of provisions of Section 55(2)(b) of Income Tax Act, 1961 read with Section 2(22B), Tribunal was justified in law in holding that cost of acquisition of shares returned by assessee for purposes of wealth tax 2 and accepted in wealth tax assessment should be taken as their fair market value as on April 1, 1981 for purpose of capital gains computation and its purported findings in this behalf are arbitrary, unreasonable and perverse? Section 2(22B) of Income Tax Act defines fair market value. aforesaid section also refers to rules. We understand from learned counsel appearing for both appellant and respondent that such rules are yet to be framed. In this case Assessing Officer did not ascertain fair market value of shares in 1981 which were acquired in year 1932. He proceeded to assess capital gains on basis that in year 1981 fair market value of shares was same as cost of acquisition in year 1932. This reasoning of Assessing Officer did not find favour with C.I.T. (Appeals)and he set aside this order. Learned Tribunal has set aside order of C.I.T.(Appeals). This is how assessee is before us. It is well-settled proposition that where there is no law on subject High Court is entitled to decide issue on basis on principles of justice equity and good conscience. That was as matter of fact guiding principle before laws were enacted after sepoy mutiny in 1857. Fortunately, there was provision for valuation of shares for purpose of Wealth Tax 3 Act which was operative prior to 1989. We are concerned in this case to find out fair value of shares as on 1st April, 1981. Since there is no other method available, it will in our opinion be fair to follow rule 1D of Wealth Tax Rules 1957 for purpose of finding out fair value of shares on 1st April 1981. In that view of matter order under challenge is set aside. question framed is answered in negative. matter is remanded to Assessing Officer. He shall ascertain value of shares as on 1st April, 1981 in manner indicated above. appeal, is thus, disposed of. (GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) SBI Indira Tibrewal v. C. I. T., Siliguri