9911796707
TMI Blog1986 (1) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... y as determined in the assessment for 1981-82 after giving deduction of advance tax. 3. In appeal AAC changed only the figure of tax liability deductible from the value of the assets. Although the balance sheet provided for Rs. 1,60,330, AAC deducted Rs. 1,11,671 to arrive at the value of Rs. 613 per share as per working in para 5 of his order. Apparently the AAC followed the ratio of CWT vs. Ashok K. Parikh (1981) 129 ITR 46 (Guj), CWT vs. Arivindbhai Chinubhai (1981) 24 CTR (Guj) 228 : (1982) 133 ITR 800 (Guj) and Special Bench judgment in WTO vs. Sheth, C.J. (1983) 4 ITD 706 (Bom). Against this decision revenue has come in appeal. 4. Shri Sathe submitted that the Special Bench judgment which was influenced by the fact that there is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w T.D.S. as an asset do not get benefit possibly because T.D.S. has no element of violation but advance tax does have a such violation. The Special Bench judgment in WTO vs. C.J. Sheth (1983) 4 ITD 706 (Bom) is thus still good law. 6. In his rejoinder Shri Sathe invited our attention to T.V. Srinivasan vs. CWT (1985) 152 ITR 599 (Mad) wherein it is held that advance tax paid in excess is an asset. That is however, the case of individual and not of the company but the dissent from (1982) 133 ITR 800 (Guj) clearly. Their Lordships have considered the wordings of r. 2D also. In view of the difference of opinion, Their Lordships have granted leave for appeal to Supreme Court. 7. We agree that a second look at the Special Bench judgement is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also states clearly what liability should be deducted and what should not be. On the assets side, there can be no two opinions. If advance tax paid is shown as an asset it should not be included in the value of the asset shown in balance sheet, further Explanation II(1)(e) reads as under: The following amounts shown as liabilities should not be treated as liabilities, (a) any amount representing provision for taxes other than the amount referred to in cl. (i) (a) to the extent of excess over the tax payable with reference to the book profits in accordance with the law applicable thereto. This provision for tax for not being treated as liability should be the amount other than the amount referred to in cl. (1) (a). Clauses (1) (a) is r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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