1971 (4) TMI 15

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..... amounting to Rs. 30 lakhs and odd, more or less for each of the assessment years under appeal were rightly not allowed as a deduction in calculating the net wealth of the assessee ? . 2. Whether, on the facts and under the circumstances of the case, the provisions of section 17 of the Wealth-tax Act were applicable so far as the assessment years 1957-58, 1958-59 and 1959-60 are concerned ? " The assessee is the son of the late Captain Raja Bahadur Ram Gopal Singh. The father was the owner of extensive zamindari and other properties. He was in huge debts. He applied under section 4 of the U. P. Encumbered Estates Act for the liquidation of his debts. While the application was pending, his estate was taken over by the court of wards on S .....

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..... as the decretal debts of Rs. 30,00,000 and odd could not be recovered from the gum of Rs. 6,87,000 and odd, the said amount constituted the net wealth of the assessee against which no debts were owed. Accordingly, the department levied wealth-tax on the said amount for the assessment years 1957-58, 1958-59 and 1959-60 under section 17. For the assessment years 1960-61 and 1961-62 the assessee was assessed to wealth-tax on the said amount. Feeling aggrieved with the decision of the department, the assessee has got these questions referred to this court. Under section 2(m) of the Wealth-tax Act the net wealth of the assessee is to be determined by taking into account the aggregate value of all his assets and deducting therefrom the aggrega .....

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..... nd from the property acquired by him. We can see no justification for restricting the scope of the expression in that way. According the Shorter Oxford English Dictionary, " owe " means " to have to pay, to be under obligation to pay or repay (money, etc.) to be indebted in, or to the amount of ". Wharton's Law Lexicon defines " due " as meaning anything owing. Accordingly, " debts owed by the assessee " are debts which he is liable to pay. The assessee is liable to pay a at incurred by his deceased father. (Anant Govind Tog v. Tukaram Kushabha Sindhe Mulla Hindu Law, 12th edition, page 426). But his liability is restricted to the extent of the property inherited by him from his deceased father. So his father's debts which may be satisfie .....

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