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TMI Blog1977 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1957, and that it should be deducted in computing the net wealth of the Hindu undivided family?" The short facts that are necessary for understanding the context in which that question has been referred are as follows : The assessee is assessed in the status of a Hindu undivided family. For the assessment year 1969-70, it claimed a total liability of Rs. 3,14,586. This figure was arrived at after deducting a sum of Rs. 19,396 from the liabilities as shown in the balance-sheet at Rs. 3,33,981. The Wealth-tax Officer found that the liabilities included a sum of Rs. 90,000 being the provision for the marriage of Indira and Anusuya. He was of the view that this was not a liability in the true sense of the word. Therefore, he finally he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the marriage account, the balance being Rs. 65,212.82. The assessee also referred to the provision contained in the partial partition dated July 22, 1970, registered as document No. 952/49 in the books of the Sub-Registrar's Office, Sowcarpet, to show that the parties to the partition have agreed to meet the marriage expenses of Vasanthi and Padmavathi, two of the daughters. The legal contention put forward before the Tribunal was that under the Hindu Adoption and Maintenance Act, 1956, under section 22 thereof, the heirs of a deceased Hindu were bound to maintain the dependants of the deceased out of the estate inherited by them from the deceased and that the property of a Hindu passing into the hands of his collateral heirs after hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal preferred by the assessee and it is the correctness of this conclusion of the Tribunal that is challenged in the form of the question reproduced already. We are of the opinion that the Tribunal completely misguided itself in dealing with the matter in question. For the purpose of assessment to wealth-tax, what is necessary to consider is the definition of the expression "net wealth" as found in section 2(m) of the Wealth-tax Act, 1957. That definition is as follows : " 2. (m) 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng passage dealing with the question as to what constitutes, "debts": "We have briefly noticed the judgments cited at the Bar. There is no conflict on the definition of the word 'debt'. All the decisions agree that the meaning of the expression 'debt' may take colour from the provisions of the concerned Act: it may have different shades of meaning. But the following definition is unanimously accepted: 'A debt is a sum of money which is now payable or will become payable in future by reason of a present obligation: debitum in praesenti, solvendum in futuro'. The said decisions also accept the legal position that a liability depending upon a contingency is not a debt in praesenti or in futuro till the contingency happened. But if there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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