1987 (9) TMI 22 - HC - Wealth-tax

Summary

The High Court of Madhya Pradesh held that income-tax and wealth-tax liabilities for earlier years up to 1975-76 are deductible in computing net wealth for 1975-76, even if the demand was created after the valuation date. This decision was based on a Supreme Court ruling in the case of CWT v. Kantilal Manilal [1985] 152 ITR 447. The Court answered the question in favor of the assessee, stating that the liabilities should be deductible as a debt.