https://www.taxtmi.com/caselaws?id=58851 A statutory penalty imposed under the Foreign Exchange Regulation Act was treated as a debt owed on the relevant valuation dates for wealth-tax purposes. Section 2(m) of the Wealth-tax Act allows deduction of debts owed on the valuation date unless expressly excluded, and the quantified penalty liability was held to exist when imposed. Pending appeal, a High Court stay, and non-payment did not extinguish the debt; they only postponed enforcement. The disputed liability therefore remained an existing obligation and had to be deducted in computing net wealth. en-us Wed, 07 Nov 1984 00:00:00 +0530 Wed, 22 Dec 2010 14:58:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=58851 A statutory penalty imposed under the Foreign Exchange Regulation Act was treated as a debt owed on the relevant valuation dates for wealth-tax purposes. Section 2(m) of the Wealth-tax Act allows deduction of debts owed on the valuation date unless expressly excluded, and the quantified penalty liability was held to exist when imposed. Pending appeal, a High Court stay, and non-payment did not extinguish the debt; they only postponed enforcement. The disputed liability therefore remained an existing obligation and had to be deducted in computing net wealth. Case-Laws Wealth-tax Wed, 07 Nov 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=58851