9911796707
TMI Blog1982 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act. 3. Assessee is an individual who was dealing in foodgrains etc. He filed application u/s 18B of WT Act on 2nd Nov., 1977 before CWT, Pune disclosing cash in hand of Rs. one lac which he wanted to be spread over at the rate of Rs. 12,500 in eight years. Though no order of CWT/CIT is available, it was stated before us that CIT directed assessment of income at the rate of Rs. 31,000 from ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who allowed income-tax liability of Rs. 44,700 for asst. yr. 1976-77 but rejected assessee s claim for deduction of income-tax liability of Rs. 52,946 and Rs. 69,224 for asst. yrs. 1977-78 and 1978-79 respectively, after accepting assessee s contention, additional income-tax liability determined for each year in the course of settlement proceedings was deductible as debt owed on the valuation date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 78 was 23rd Oct., 1976 while that for asst. yr. 1978-79 was 11th Nov., 1977 and the question to be considered was whether there was any income-tax liability on those two dates. It was urged that the assessee having made disclosure application u/s 18B of WT Act on 2nd Nov., 1977, it can be presumed that CWT s order was passed after that date and therefore, liability if any would get fastened in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d only when CIT/CWT passed the order. 7. We have carefully considered submissions of both the parties. The short question before us is when Rs. 31,000 were being treated as part of assessee s wealth in the two years under consideration, whether tax liability thereof could be ignored. We do not see any reason why tax liability should be ignored. The position is now quite clear in view of the obse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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