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TMI Blog1994 (12) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the appeals have been consolidated and a common order is being passed for the sake of convenience. 2. In these two wealth-tax assessments, the AO had taken into consideration the excess of advance-tax paid over the income-tax liabilities as per the return, as an asset by way of income-tax refund due to the assessees. In the respective appeals, the CWT(A), mainly basing on the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax or excess advance-tax paid in pursuance of a statutory compulsion cannot be taken to be a deposit. The entire advance-tax paid will be an asset of the assessee and the entire accrued income-tax liability for the relevant accounting year will be a debt owed by the assessee to the Government with the result that the excess advance-tax will continue to have the character of an asset of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the valuation date. Hence, the High Court came to the decision that payment of any advance tax cannot be treated as an asset of the assessee which belongs to him and furthermore that the future possibility of getting refund of the advance-tax paid represents a mere chance of getting an asset in future, may be years after the valuation date, when the assessment proceedings under the income-tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be only after the relevant valuation date could relate back to the valuation date and such excess tax could be considered to be an asset of the assessee on the date of valuation. This decision required reconsideration. Hence, the question, whether income-tax refunds which became due after the valuation date constituted an asset chargeable to wealth-tax, had to be referred." 5. it would thus be e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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