Undisclosed business debts can be treated as deductible for wealth-tax rules, but contingent liabilities are excluded from deduction. The provision allowing any debt relating to the business owed by the assessee but not disclosed in the balance sheet to be allowed as a deduction, with the express qualification that a contingent liability shall not be treated as a debt owed, has been omitted from the Wealth Tax Rules.
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.
Undisclosed business debts can be treated as deductible for wealth-tax rules, but contingent liabilities are excluded from deduction.
The provision allowing any debt relating to the business owed by the assessee but not disclosed in the balance sheet to be allowed as a deduction, with the express qualification that a contingent liability shall not be treated as a debt owed, has been omitted from the Wealth Tax Rules.
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