9911796707
TMI Blog1978 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year in question is 1965-66, for which the relevant valuation date is November 4, 1964. The said sum of Rs. 15,20,000 is a portion of the total assets voluntarily disclosed by the assessee under s. 68 of the Finance Act, 1965. The disclosure was made on May 31,1965, that is, later than the said valuation date. The break-up of the total assets disclosed was as under: Rs. (a) Cash ... 15,17,000 (b) Bonds ... 9,80,000 (c) Shares in Bank of Bihar Ltd. at face value ... 3,000 --------- To ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the only contention now made was that in any event the income-tax paid @ 60% in accordance with sub-s. (3) of s. 68 of the Finance Act, 1965, on the value of the asset included in his wealth, should be deducted as debt owed by him in terms of s. 2(m) of the Act. The Tribunal accepted that the assessee was entitled to the deduction of the tax payable on the value of the asset included in his net wealth, but the amount of such tax had to be determined in accordance with the rate of tax prescribed under the relevant Finance Act. The Tribunal, accordingly, directed the WTO to give the necessary deduction on the sum of Rs. 15,20,000. As stated, at the instance of the Commissioner of Wealth-tax, the Tribunal has made a reference on the quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on it being unascertainable, the deduction allowed was illegal. The argument, to my mind, is untenable. " Wealth-tax " is a tax on net wealth. " Net wealth " has been defined in s. 2(m) of the Act to mean " the amount by which the aggregate value computed in accordance with the provisions of this Act of all assets, wherever located, belonging to the assessee on the valuation date, including the assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date ...... There are certain exceptions to which are not relevant to be quoted, because they do not affect this case. Evidently, by this definition only that part of the gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the assessee had put forth a claim for a debt owed in the shape of income-tax on an asset which was yet to be disclosed and offered for taxation, such liability would have been a contingent liability. In the instant case, however, the assets have been brought to surface and have also suffered taxation. Though the disclosure was made on May 31, 1965, that is, after the relevant valuation date, the department thought, and rightly so, that the assets had been with the assessee even on the relevant valuation date. This part of the department's thinking, though challenged by the assessee in the course of the wealth-tax assessment proceeding, has been accepted by all the fact-finding authorities. Such being the factual position, it follows th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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