Exclusion of specified liabilities from wealth-tax valuation clarifies which balance-sheet items are ignored for asset valuation. Certain balance-sheet liabilities are excluded from wealth-tax valuation: non-borrowed capital employed in the business, reserves, provisions for future or contingent liabilities, and debts specifically used to acquire wealth-tax-exempt assets; where the debt portion is not ascertainable it is apportioned pro rata to the asset's value, and provisions for non-tax purposes are treated as reserves.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Exclusion of specified liabilities from wealth-tax valuation clarifies which balance-sheet items are ignored for asset valuation.
Certain balance-sheet liabilities are excluded from wealth-tax valuation: non-borrowed capital employed in the business, reserves, provisions for future or contingent liabilities, and debts specifically used to acquire wealth-tax-exempt assets; where the debt portion is not ascertainable it is apportioned pro rata to the asset's value, and provisions for non-tax purposes are treated as reserves.
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