https://www.taxtmi.com/caselaws?id=5873 Income-tax, wealth-tax and gift-tax liabilities are deductible in computing net wealth only if they have crystallised and subsist on the valuation date. Assessment may quantify the liability later, but that does not prevent it from being a debt once it has arisen under the taxing statute. Where appellate or superior proceedings finally hold that no tax liability exists, the supposed demand is treated as never having been outstanding and cannot be deducted as a debt. On that principle, liabilities cancelled in appeal were excluded from deduction, while the remaining tax liabilities were allowable even though final assessment orders were passed later. en-us Fri, 21 Oct 1983 00:00:00 +0530 Fri, 28 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5873 Income-tax, wealth-tax and gift-tax liabilities are deductible in computing net wealth only if they have crystallised and subsist on the valuation date. Assessment may quantify the liability later, but that does not prevent it from being a debt once it has arisen under the taxing statute. Where appellate or superior proceedings finally hold that no tax liability exists, the supposed demand is treated as never having been outstanding and cannot be deducted as a debt. On that principle, liabilities cancelled in appeal were excluded from deduction, while the remaining tax liabilities were allowable even though final assessment orders were passed later. Case-Laws Wealth-tax Fri, 21 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5873