1977 (12) TMI 25

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..... these companies for purposes of wealth-tax assessment of the assessees for the assessment year 1962-63 ?" The reference arises out of the assessment under the Wealth-tax Act on an individual for the year 1962-63, the corresponding valuation date being 31st March, 1962. Amongst other assets, the assessee owned 4,620 shares of the face value of Rs. 100 each in a company called Caprihans (India) Pvt. Ltd. Similarly, he held 800 shares of the face value of Rs. 50 each in a company called Mangaldas H. Verma Pvt. Ltd. In valuing these shares, the Wealth-tax Officer adopted the break-up method and in doing so, considered that the provision for additional super-tax under section 104 of the Act of 1961, corresponding to section 23A of the Act of .....

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..... possible liability to super-tax under that section could not be said to have ripened into a debt. It was contended before the Madras High Court that the liability to pay additional super-tax under section 23A sprang not from the order which the Income-tax Officer may make, but from section 23A itself. The Division Bench of the Madras High Court considered the scheme of section 23A and observed at page 113 : "The structure of section 23A and the manner in which the liability to additional super-tax arises thereunder leave no room for doubt that the liability is not charged automatically by statutory force but arises only from an order of the Income-tax Officer, which he will make only after consideration of and decision on various factual .....

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..... an exception to the general rule of approach indicated by the Madras High Court in the decision earlier referred to. For such exception to be made, it is necessary that the question should have been raised in the specific form by the assessee before the revenue authorities and the necessary facts for giving a proper answer to the same brought on record. In the case before us, it appears that the question in this special or exceptional form was not urged before the lower authorities and the necessary material is, therefore, not on the record. Mr. Munim submitted that this would be merely an aspect of the question referred to us. But we are unable to accept such submission. It is the admitted position that the orders determining the liabili .....

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