https://www.taxtmi.com/caselaws?id=188838 The court upheld the Tribunal's decision, ruling in favor of the assessee regarding the deductibility of outstanding tax liability as debt in the computation of net wealth under the Wealth-tax Act for assessment years 1958-59 and 1959-60. The court determined that the settlement with the Central Board of Revenue created a new liability, allowing the deduction of the settlement amounts of Rs. 3.75 lakhs and Rs. 2.25 lakhs as debts owed on the respective valuation dates. The court emphasized that the settlement amount constituted a new debt distinct from old income-tax arrears, thus not subject to provisions for recovery under the Act. en-us Tue, 19 Jan 1965 00:00:00 +0530 Sat, 17 Dec 2016 15:04:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188838 The court upheld the Tribunal's decision, ruling in favor of the assessee regarding the deductibility of outstanding tax liability as debt in the computation of net wealth under the Wealth-tax Act for assessment years 1958-59 and 1959-60. The court determined that the settlement with the Central Board of Revenue created a new liability, allowing the deduction of the settlement amounts of Rs. 3.75 lakhs and Rs. 2.25 lakhs as debts owed on the respective valuation dates. The court emphasized that the settlement amount constituted a new debt distinct from old income-tax arrears, thus not subject to provisions for recovery under the Act. Case-Laws Income Tax Tue, 19 Jan 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188838