1982 (4) TMI 196

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....ssment years 1970-71, 1971-72, 1974-75 and 1975-76, one of the common points involved was whether the department was in any manner justified in including as part of the net wealth of the assessee, the amounts of refund relating to these assessment years, though determined as a consequence of assessments made much after the relevant valuation dates, i.e., the question is whether on the relevant val....

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....ty and constituted an asset for the purpose of the Act, even though the date of payment was deferred and its payment was spread over a period of years. He also observed that the right to receive the refund was both enforceable and transferable and was an actionable claim. There cannot be any quarrel with this abstract proposition of law. But the question is whether such a right had accrued on the ....

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....he valuation date what the assessee does is to discharge his legal obligations by paying advance tax, which otherwise, if undischarged, will remain as a debt owed by him on the valuation date. The future possibility of getting refund of the advance tax paid represents a mere chance to get an asset in future, may be years after the valuation date, when the assessment proceedings under the Income-ta....

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....out those uncertainties, eventually the Gujarat High Court held that even assuming that the likelihood or obtaining refund is an asset, it is incapable of being evaluated on the valuation date and an asset not capable of being ascertained and evaluated, could not be treated as an asset for the purpose of arriving at the net wealth of an assessee. This, therefore, directly settles the issue and tha....