https://www.taxtmi.com/caselaws?id=8755 The High Court considered the applicability of section 2(m) of the Wealth-tax Act, 1957 in determining the interest of an assessee in a partnership firm. The dispute revolved around the deductibility of the firm's income-tax liability in computing the net wealth of the assessee. Emphasizing the importance of accurately determining the net wealth of the firm, the court allowed the deduction of the income-tax liability as a legally enforceable debt. The court clarified that partners should not be penalized for the firm's tax defaults if their individual tax liabilities are settled. Consequently, the court ruled in favor of the assessee, permitting the deduction of the outstanding income-tax liability in calculating the net wealth. en-us Wed, 09 Feb 1972 00:00:00 +0530 Wed, 03 Jun 2009 16:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8755 The High Court considered the applicability of section 2(m) of the Wealth-tax Act, 1957 in determining the interest of an assessee in a partnership firm. The dispute revolved around the deductibility of the firm's income-tax liability in computing the net wealth of the assessee. Emphasizing the importance of accurately determining the net wealth of the firm, the court allowed the deduction of the income-tax liability as a legally enforceable debt. The court clarified that partners should not be penalized for the firm's tax defaults if their individual tax liabilities are settled. Consequently, the court ruled in favor of the assessee, permitting the deduction of the outstanding income-tax liability in calculating the net wealth. Case-Laws Wealth-tax Wed, 09 Feb 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8755