1967 (8) TMI 31

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....r section 27(1) of the Wealth-tax Act, 1957, the following being the questions for decision: " 1. Whether, on the facts and in the circumstances of the case, the provision of Rs. 5,78,076, Rs. 5,25,657 and Rs. 1,94,41 made in respect of taxes were deductible in the computation of net wealth as on 31st March, 1957, 31st March, 1958, and 31st March, 1959, respectively ? 2. Whether, on the fact....

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....he facts which will have a bearing only on the first part of the third question. The assessee is a public limited company, which has been assessed to wealth-tax for the assessment years 1957-58 to 1959-60. In respect of the assessment years 1944-45 to 1946-47, under the Income-tax Act as well as the Excess Profits Tax Act the aggregate tax due from the assessee was determined in the appeal dispose....

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....tax Officer disallowed the first claim on the ground that as on March 31, 1957, the date of valuation, the assessee was all along disputing the tax demanded and refusing to acknowledge liability therefor and that the actual settlement of tax arrears took place only after that date. For the next year too the claim for deduction of Rs. 15 lakhs was disallowed on the ground that it became due only af....

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....s, fairly and truly represented the value of the assets mentioned therein. Following Kesoram Industries & Cotton Mills Ltd. v. Commissioner of Wealth-tax, the second question is answered against the assessee. So far as the third question is concerned, namely whether the sum of Rs. 15 lakhs as on March 31, 1958 was entitled allowance as a this is covered by Commissioner of Wealth-tax v. G.D. Nai....