1972 (8) TMI 41 - HC - Wealth-tax

Whether, on the facts and in the circumstances of the case, the provisions of section 2(m) of the Wealth-tax Act, 1957, are applicable for determination of the assessee s interest in the wealth of the firm styled as Messrs. J. K. Bankers, for the assessment years 1957-58 to 1964-65 ? - we hold that section 2(m) of the Act is not applicable and as such the income-tax liability of the firm is to be deducted out of the total wealth of the firm for purposes of ascertaining the assessee s share in that firm - Question answered in the negative in favour of the assessee and against the department

Summary

The High Court of Allahabad ruled that section 2(m) of the Wealth-tax Act, 1957 is not applicable in determining the assessee's interest in the wealth of the firm Messrs. J. K. Bankers. The court held that the income-tax liability of the firm should be deducted from its wealth. The decision favored the assessee, and the court awarded costs of Rs. 200.