1989 (3) TMI 24 - HC - Wealth-tax

Summary

The High Court of Calcutta ruled that the tax paid by the assessee based on voluntary disclosure of income under section 68 of the Finance Act, 1965, after the valuation date was deductible in computing the net wealth under the Wealth Tax Act, 1957 for the assessment year 1965-66. Both the Appellate Assistant Commissioner and the Tribunal agreed that the tax liability on the disclosed income should be deducted as per section 2(m)(iii) of the Act. The court held that the tax paid for the relevant assessment year must be allowed as a deduction, as the liability to pay tax arises at least on the last day of the financial year. The question was answered in favor of the assessee, with no order as to costs.