Wealth-tax liability treated as deductible business outgo, with the assessee's claim upheld under the governing principle.

Wealth-tax liability was examined as a deductible outgo in computing assessable income for the relevant year. The Court applied its then-recent ruling on the same legal question and treated the liability, where admissible on the governing principle, as a business-related expenditure. On that basis, the assessee's claim for deduction was upheld and the wealth-tax liability was held allowable in computing taxable income.

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Issues: Whether wealth-tax liability claimed by the assessee was allowable as a deduction in computing its assessable income for the relevant assessment year.

Analysis: The allowance of wealth-tax liability was considered in the light of the governing law on deduction of such liability as business-related expenditure. The appeal was disposed of by applying the Court's then-recent decision on the same legal question, on which the assessee's claim had been upheld.

Conclusion: The question was answered in favour of the assessee, and the deduction was held allowable.

Ratio Decidendi: Wealth-tax liability, where allowable on the governing principle applied by the Court, can be deducted in computing taxable income when it is treated as an admissible business-related outgo.

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