https://www.taxtmi.com/caselaws?id=172227 A provision in the balance-sheet for an existing tax liability was treated as deductible in computing net wealth because the liability arose when the income was earned and was not contingent merely due to pending assessment. The court held that such a provision represents a present debt on the valuation date and falls within deductible liabilities unless specifically excluded by the Wealth-tax Act, 1957. The retrospective amendment in section 2(m)(iii) was read as applying only to tax, penalty, or interest payable pursuant to an order already passed under the relevant enactments, and not to a liability where no assessment order had yet been made. The deduction was therefore allowed. en-us Wed, 06 Feb 1963 00:00:00 +0530 Fri, 14 Aug 2015 18:51:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172227 A provision in the balance-sheet for an existing tax liability was treated as deductible in computing net wealth because the liability arose when the income was earned and was not contingent merely due to pending assessment. The court held that such a provision represents a present debt on the valuation date and falls within deductible liabilities unless specifically excluded by the Wealth-tax Act, 1957. The retrospective amendment in section 2(m)(iii) was read as applying only to tax, penalty, or interest payable pursuant to an order already passed under the relevant enactments, and not to a liability where no assessment order had yet been made. The deduction was therefore allowed. Case-Laws Income Tax Wed, 06 Feb 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172227