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Issues:
- Interpretation of section 2(m)(iii) of the Wealth-tax Act, 1957 regarding taxes deducted at source from employees' salaries. - Whether the liability for payment of tax deducted at source under section 192 of the Income-tax Act falls under section 2(m)(iii) of the Wealth-tax Act. - Determining if the tax deducted at source is a debt or liability owed by the assessee for wealth tax computation. Analysis: 1. The appeals consolidated before the Appellate Tribunal ITAT CALCUTTA-B involved the interpretation of section 2(m)(iii) of the Wealth-tax Act, 1957, specifically regarding taxes deducted at source from employees' salaries. The issue was whether such taxes, remaining unpaid to the Central Government for over 12 months, should be deductible in the computation of net wealth. 2. The absence of the assessee during the hearing led to an ex parte decision based on the arguments presented by the departmental representative. The case revolved around the determination of the assessee's interest in a partnership concern and adjustments made by the WTO regarding income-tax liabilities outstanding for more than 12 months. 3. The AAC, on appeal, held that the liability arising from tax deduction under section 192 of the Income-tax Act did not satisfy the conditions of section 2(m)(iii) of the Wealth-tax Act. The AAC rejected the contention that timely deposit of tax deducted at source was a duty cast on the assessee. However, a direction was given to ascertain the correct quantum of such liability. 4. The departmental representative argued that the tax deducted at source should be considered a liability under section 2(m)(iii) as it is income-tax, regardless of whether it is the assessee's own tax or on behalf of others. Emphasis was placed on the interpretation of the phrase "in pursuance of this Act" in the context of liability. 5. The Tribunal analyzed the provisions of the Income-tax Act related to tax deduction at source under section 192. It was highlighted that the liability for such tax was not in consequence of an order passed under the Income-tax Act but under the statutory provision treating the responsible person as an assessee in default for non-payment. 6. The Tribunal concluded that the tax deducted at source under section 192 of the Income-tax Act did not fall under section 2(m)(iii) of the Wealth-tax Act as it was a liability imposed by specific provisions for tax recovery, not by an order passed under the Income-tax Act. The decision of the AAC was upheld, and all appeals by the revenue were dismissed. This detailed analysis provides a comprehensive understanding of the judgment's key issues and the Tribunal's decision regarding the interpretation of relevant tax laws.
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