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TMI Blog2001 (2) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... l assessment to sales tax for 1976-77?" The facts of the case are as follows: The assessee filed his return of wealth for the assessment year 1981-82 and claimed deduction of Rs. 6,43,499. This amount was described as the amount for purchase tax relating to the year 1976-77. The Wealth-tax Officer disallowed the claim on the ground that the Government of Kerala had exempted marine products from levy of purchase tax during the relevant accounting period and held that the provision was not against any real or ascertained liability. Aggrieved by the order of the Wealth-tax Officer, the assessee preferred an appeal before the Wealth-tax Commissioner (Appeals). The Wealth-tax Commissioner (Appeals) confirmed the order of the Wealth-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had filed appeals subsequent to the valuation dates and that relief had been granted by the appellate authority would have no relevance for determining whether a debt was owed on the relevant valuation date. Reference was made to the decision of the Madras High Court in Late P. Appavoo Pillai v. CWT [1973] 91 ITR 138. We are unable to agree with the view taken by the Appellate Tribunal. Whether a debt was owed by the assessee on the valuation date would depend, as was observed by this court in Kesoram Industries and Cotton Mills Ltd.'s case [1966] 59 ITR 767 and H. H. Setu Parvati Bayi's case [1968] 69 ITR 864., on the fact that a liability had already crystallised under the relevant taxing statute on the valuation date. An inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there is no tax liability, it cannot be said that merely because originally a tax liability had been determined and stood existing on the valuation date there was a debt owed by the assessee. The fact cannot be ignored that when the case was carried in appeal or reference it was found by the superior authority that in fact there was no tax liability at all. That final determination, even though rendered after the valuation date, directly relates to the question whether on the valuation date there was a debt owed by the assessee. If the finding is that there was no tax liability, it must be held that there was no debt owed by the assessee on the valuation date. In this regard, we do not agree with what has been said by the Madras High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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