9911796707
TMI Blog1982 (3) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... not covered by section 2(m)(iii) of the Wealth-tax Act, 1957, and accordingly deductible in the computation of net wealth. The common ground taken by the revenue is that the learned AAC erred in doing so. 2. At the time of hearing none appeared on behalf of the assessee although the notice of hearing was duly served on 17-2-1982 and acknowledgment is on record. Therefore, the learned departmental representative was duly heard and the case is decided ex parte on merits of the case. 3. The assessee is an individual. While computing the net wealth of the assessee the WTO determined the share of interest of the assessee in the partnership concern, Chatterjee Polk. While determining the interest of the assessee in the aforesaid concern he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the AAC that the tax referred to in section 2(m)(iii) is the tax payable by the assessee on his income, and not the tax on some one else's income was not correct inasmuch as what has been deducted at source under section 192 is nonetheless income-tax and there is no distinction between the income-tax payable by the assessee and on behalf of others. He further argued that the view of the AAC that the tax payable should arise from an order passed under the Income-tax Act and the liability under section 192 read with section 200 does not arise from such an order and, hence would not be hit by section 2(m)(iii), was not correct. In this connection, he has laid emphasis on the word "or" which appears after the phrase "in consequence of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able in respect of the previous year's income was a "debt owed" within the meaning of section 2(m) as at the corresponding valuation date. Items (a) and (b) of section 2(m)(iii) clearly show that the amount of tax, penalty or interest payable could be such that the assessee can claim in appeal, revision or other proceedings as not being payable by him or, although it is not so claimed but nevertheless outstanding for a period of more than 12 months on the valuation date. The preamble of sub-clause (iii) of section 2(m) provides for exclusion of the tax, penalty or interest payable in consequence of any order passed under or in pursuance of the stated Acts. A plan reading of this clause shows that the amount of tax, penalty or interest payab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable by the assessee, if not by way of a regular assessment but in pursuance of certain provisions of the Act for taxation of income; for example, the penal tax or additional income-tax levied under section 104 for none or inadequate payment of dividend vis-a-vis the statutory percentage of the distributable income. Even in such a case a specific order is required to be passed before raising tax. Further, the use of the word "or" in section 2(m)(iii), although it is disjunctive in nature, so pointed out by the learned departmental representative, nonetheless the passing of an order is sine qua non for treating the tax, penalty or interest payable thereunder as a debt or liability. 7. Now turning to the case of the assessee, section 192 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, the provisions, relating to tax deducted at source, treat the responsible person concerned as an assessee for a limited purpose of collecting the tax from the employee for and on behalf of the Central Government and, thus, treat him as an agent of the Central Government. According to sub-section (2) of section 201 of the Income-tax Act, the tax deducted but not paid together with simple interest payable thereon, if any, for delayed payment shall be a charge upon all the assets of the person or the company, as the case may be. Thus, the tax and/or interest payable by the responsible person concerned would be a liability on all his assets. Such liability has not been fastened by way of any order passed under or in pursuance of the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
