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TMI Blog1978 (2) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... : " Whether, on the facts and in the circumstances of the case, the tax payable under the Income-tax Act, on the amount disclosed under section 68 of the Finance Act of 1965, is deductible in computing the net wealth for the assessment years 1960-61 to 1965-66 ? " The facts leading to the reference are as follows : In pursuance of the Finance Act of 1965, the assessee made a declaration dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he wealth of the assessee and, accordingly, assessed on the basis of Rs. 3 lakhs as the undisclosed wealth. Aggrieved by this order, the assessee preferred an appeal to the AAC. The AAC also held that the assessee was not entitled to the deduction of Rs. 1,80,000 in computing the net wealth of the assessee. This view was upheld by the Tribunal also. It is under those circumstances, the above quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Kerala High Court, to which one of us was a party, had to consider a similar question in W.A. Nos. 279 and 280 of 1971, and by a judgment dated June 6, 1973 (since reported as Babu Naidu v. WTO [1978] 112 ITR 341) it was held : " When we read the provisions in the above section with section 4 of the Income-tax Act, 1961, we have irresistibly to come to the conclusion that the Finance Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1957. The Wealth-tax Officer was, therefore, in error in not having deducted the income-tax liability on the various valuation dates for the four years in question on the amounts declared by the assessees under s. 68(2) of the Finance Act, 1965. " We have chosen to quote this judgment since this was an independent view taken without reference to the earlier judgments but purely on the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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