1998 (10) TMI 21

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..... pellate authority accepted the contention of the assessee that the full amount of provision for taxation as accepted without excluding therefrom the advance tax paid which appeared as an asset on the assets side in the balance-sheet should be deducted. The appellate authority accepted the contention of the assessee. On further appeal to the Tribunal, the Tribunal held that the advance tax paid would not fall to be deducted from the provision for taxation appeiring on the liabilities side. In holding as above, the Tribunal followed its decision in the case of the assessee for the earlier year. However, at the instance of the Revenue, the following question No. 1 was referred for the opinion of this court : "(1) Whether, on the facts and in .....

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..... he provision for taxation made in the column of liabilities in the balance-sheet, the amount of advance tax already paid is again shown as a liability, it will not be treated as a liability. It must be remembered that the advance tax has already gone out of the profits and been debited in the account books of the company. This is the true function of both the sub-clauses. The situation is best explained by giving an illustration. Take a case where a company has paid Rs. 8 lakhs by way of advance tax which is shown as an asset in the balance-sheet. The company has made a provision of Rs. 15 lakhs for taxation which is shown as a liability in the balance-sheet. The Wealth-tax Officer estimates the tax payable on the basis of book profits at R .....

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..... be given full possession of the corpus of the trust property. In the assessment years under reference, the beneficiaries are not entitled to the absolute interest in the properties of the trust created in each of these trusts. It was claimed that the interest of the beneficiary alone is to be taken. The Wealth-tax Officer did not accept this submission. On appeal, the Appellate Assistant Commissioner held that the entire value of the corpus cannot be included in the net wealth but only the beneficial interest. On further appeal to the Tribunal, it was held that the entire corpus cannot be taken into account but only the beneficial interest of the assessees should be included for the purpose of the Wealth-tax. However, at the instance of the .....

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