https://www.taxtmi.com/caselaws?id=184888 For wealth-tax purposes, only a crystallised and presently existing tax liability qualifies as a "debt owed" under section 2(m) of the Wealth-tax Act, 1957. Amounts already quantified and demanded under section 18A and section 29 of the Indian Income-tax Act were treated as deductible debts because they had become ascertainable obligations on the valuation date. By contrast, a reserve created for anticipated or future income-tax liability was only a provision for a possible demand and had not yet crystallised into an existing debt. The sums demanded were deductible, but the reserve for anticipated tax liability was not. en-us Tue, 18 Dec 1962 00:00:00 +0530 Sat, 23 Jul 2016 13:35:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184888 For wealth-tax purposes, only a crystallised and presently existing tax liability qualifies as a "debt owed" under section 2(m) of the Wealth-tax Act, 1957. Amounts already quantified and demanded under section 18A and section 29 of the Indian Income-tax Act were treated as deductible debts because they had become ascertainable obligations on the valuation date. By contrast, a reserve created for anticipated or future income-tax liability was only a provision for a possible demand and had not yet crystallised into an existing debt. The sums demanded were deductible, but the reserve for anticipated tax liability was not. Case-Laws Income Tax Tue, 18 Dec 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184888