1984 (3) TMI 190

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....ntion relates to the direction contained in para 5 of the order of the Commissioner (Appeals) that the advance tax liability in the sum of Rs. 1,68,089 should not be deducted as a debt owed by the assessee as on the first day of the computation period while ascertaining the capital employed in an industrial undertaking under the provisions of section 80J(1A)(III) of the Income-tax Act, 1961 ('the Act'). 2 to 4. [These paras are not reproduced here as they involve minor issues.] 5. The following are the facts relating to the next contention : While computing the capital employed in the new industrial undertaking known as Visa Match Industries, the IAC (Assessment), deducted from the aggregate value of the assets, as ascertained unde....

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....f advance tax under section 18A of the Indian Income-tax Act, 1922 ('the 1922 Act'), payable on 15-3-1957, was deductible as it was a debt owed by the assessee on the valuation date within the meaning of section 2(m) of the Wealth-tax Act, 1957 ('the 1957 Act'). Our attention was also invited to clause (III) of section 80J(1A) which provides for deduction of debts inclusive of liability in respect of tax while computing the capital as on the first day of the computation period for the purposes of section 80J relief. The learned authorised representative for the department, particularly, drew our attention to sub-clause (i)(a) of clause (III) of this section which specifically defines tax to mean income-tax or super-tax inclusive of advance ....

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.... of tax shall be deemed to have become due in the case of advance tax due under any provisions of this Act, on the date on which such advance tax is payable [emphasis supplied.] And following this, the two instalments of advance tax (15-9-1979 and 15-12-1979) fall after the first day of the computation period (1-7-1969) and, therefore, shall be deemed to have become due only on those dates, we are bound to follow the decision of the Hon'ble Supreme Court in Assam Oil Co. Ltd.'s case, though decided in the context of the 1957 Act, as it lays down the law of the land in relation to determination of the exact date of the liability in relation to advance tax. In that case, the Hon'ble Supreme Court, as already mentioned by us earlier, held, tha....