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TMI Blog1987 (2) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... s an allowable liability in the return. The WTO treated this as a contingent liability and, therefore, he did not allow it. The assessee appealed and the AAC held that it was a deferred Mehr and the liability was not allowable. Aggrieved by the same, the assessee is in appeal. 3. The learned counsel for the assessee contended that the amount of Rs. 1,50,000 payable by the assessee in this case is a prompt dower and as such allowable. The authorities below have reached the conclusion that it is a deferred Mehr. This is challenged by Sri Italia. Reliance was placed upon some observations of the Andhra 91 ITR 179 in support of his Pradesh High Court in the case of CWT v. Khan Saheb Dost Mohd. Alladin [1973] submission that prompt dower is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the husband in view of the WT provisions contained in section 4(1)(a)." The above is a wrong statement of law. Mehr or dower is a sum of money which a wife is entitled to receive from the husband in consideration of the marriage and this is the principle in the Islamic Law. When once the amount is payable for adequate consideration, section 4(1)(a) of the WT Act has no application at all. 7. The certificate of marriage issued by Shia Ithna-Asheri Jamath of UK no doubt does not expressly say that this was a prompt dower. But it is equally not possible to hold on the basis of that certificate that it was a deferred dower. When it is not specified at the time of marriage as to what portion is to be treated as prompt and what portion is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the meaning of section 2(m) of the Act, as pointed out by the Supreme Court in the case of Kesoram Industries Cotton Mills Ltd. v. CWT [1966] 59 ITR 767. Prompt dower payable by the assessee in this case is a debt owed within the meaning of section 2(m) and we accordingly record a finding in favour of the assessee. It was subsisting on the relevant valuation date and, hence, deductible in the competition of net wealth. We direct the WTO to allow the deduction claimed. 10. There is another ground. The amount standing to the credit of the assessee in the CDS account was included in the assessment by the WTO. The assessee had claimed this amount as exempt. In the appeal, the AAC held that the amount was includible, but, however, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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