https://www.taxtmi.com/caselaws?id=6936 A present and ascertainable statutory or enforceable liability is a debt deductible in computing net wealth, even if exact quantification or payment follows later. On that basis, the provision for employees' bonus was deductible because the liability had become enforceable and had been admitted by the assessee, with advances also made against it. The provision for income-tax was deductible because tax liability becomes a debt once it is a present obligation capable of ascertainment. The same reasoning applied to sales tax, as liability arose from taxable turnover and was not a mere contingency. The disputed provisions were therefore deductible in computing net wealth. en-us Wed, 17 May 1967 00:00:00 +0530 Sat, 07 Feb 2009 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6936 A present and ascertainable statutory or enforceable liability is a debt deductible in computing net wealth, even if exact quantification or payment follows later. On that basis, the provision for employees' bonus was deductible because the liability had become enforceable and had been admitted by the assessee, with advances also made against it. The provision for income-tax was deductible because tax liability becomes a debt once it is a present obligation capable of ascertainment. The same reasoning applied to sales tax, as liability arose from taxable turnover and was not a mere contingency. The disputed provisions were therefore deductible in computing net wealth. Case-Laws Wealth-tax Wed, 17 May 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6936