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TMI Blog1985 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... sment order passed by the Wealth-tax Officer in computing the taxable wealth of the assessee thereby including therein liability which is outstanding on the valuation date and is claimed by the assessee in appeal, etc., as not being payable by him ? " The facts giving rise to this reference as per the statement of the case received may be stated, in brief, thus: The dispute relates to the deduction of wealth-tax liabilities in computing the taxable wealth of the assessee. The Wealth-tax Officer did not allow any of these liabilities presumably on the ground that neither they had been quantified on the valuation dates nor had they been accepted as such by the assessee. Since the assessee was agitating the matter in appeals, the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question referred for the opinion of this court has to be answered in favour of the assessee in view of the Supreme Court decisions reported in CWT v. K. S. N. Bhatt [1984] 145 ITR 1, CWT v. Vadilal Lallubhai [1984] 145 ITR 7 and CWT v. Vimlaben Vadilal Mehta [1984] 145 ITR 11. In the case of CWT v. K. S. N. Bhatt [1984] 145 ITR 1 (SC), it has been held that in computing the net wealth of the assessee for wealth-tax, the liabilities towards income-tax, wealth-tax and gift-tax, which crystallise on the relevant valuation date as determined in the respective assessment orders as liabilities, are to be deducted even though those assessment orders are finalised after the valuation date. The quantification effected by an assessment order may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on the last day of the previous year in the case of an income-tax liability, on the valuation date in the case of a wealth-tax liability and on the last day of the previous year in the case of a gift-tax liability. It has been further held that it is well settled that When an appeal is filed against an assessment order before the Appellate Assistant Commissioner, the assessment is thrown open and the appellate proceeding constitutes a continuation of the assessment proceeding. Even if the tax liabilities, of which a deduction was claimed, were created by rectification orders or by assessment orders made after the date of the wealth-tax assessment order under appeal, the law requires the claim to deduction being considered on the same ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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