https://www.taxtmi.com/caselaws?id=6414 A provision made for tax liability may constitute a debt owed for wealth-tax purposes where it reflects a present obligation rather than a mere contingent liability. Applying the distinction between a liability and a debt, the Supreme Court treated the amount attributable to the last instalment of advance tax, for which demand had already been made before the valuation date, as an existing obligation. It was therefore deductible in computing net wealth, and the provision for tax liability, after excluding that instalment, was held to be a debt owed on the relevant valuation date. en-us Thu, 23 Sep 1971 00:00:00 +0530 Thu, 04 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6414 A provision made for tax liability may constitute a debt owed for wealth-tax purposes where it reflects a present obligation rather than a mere contingent liability. Applying the distinction between a liability and a debt, the Supreme Court treated the amount attributable to the last instalment of advance tax, for which demand had already been made before the valuation date, as an existing obligation. It was therefore deductible in computing net wealth, and the provision for tax liability, after excluding that instalment, was held to be a debt owed on the relevant valuation date. Case-Laws Wealth-tax Thu, 23 Sep 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6414