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TMI Blog1971 (9) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act on the relevant valuation date - question is answered in favor of assessee - - - - - Dated:- 23-9-1971 - Judge(s) : H. R. KHANNA., K. S. HEGDE. and A. N. GROVER. STATEMENT OF THE CASE TO THE HIGH COURT These two applications, one by the assessee and the other by the Commissioner of Wealth-tax are consolidated. By these applications the respective applicants desire the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med the amount as a deduction in the computation of the net wealth. The claim was disallowed by the Wealth-tax Officer and the Appellate Assistant Commissioner of Wealth-tax. The appellant's contention was that the provision for tax liability was to be regarded as a debt owed by the assessee within the meaning of section 2(m) of the Wealth-tax Act and should, therefore, be excluded from the net we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment immediately or on the date fixed in the notice of demand. Hence, the Tribunal took the view that, though the provision for taxation, as calculated by the assessee, represents a liability of the assessee, it is not necessarily a "debt owed by the assessee", because there was no obligation on the assessee to make payment thereof until the tax had been assessed and demanded. The provision f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led by the assessee a question is raised on the legality of the inclusion of the amount of the provision for taxation. In the application filed by the Commissioner of Wealth-tax, the legality of the order of the Tribunal excluding the amount of the last instalment of advance tax from the computation of the net wealth has been questioned. JUDGMENT The judgment of the court was delivered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accepted as correct. In the result Civil Appeal No. 1404 of 1970 and Civil Appeal No. 1471 of 1971 are allowed, the answer given by the High Court to the questions referred to it are discharged and in its place we answer those questions in favour of the assessee. There will be no order as to costs. Now coming to Civil Appeal No. 1405 of 1970, we revoke the certificate granted by the High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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