1970 (1) TMI 10

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....unal has referred the following question : " Whether, in computing the net wealth of the assessee for the assessment years 1957-58, 1958-59 and 1959-60, the amount of the provision for payment of income-tax and super-tax in respect of assessments not completed till the respective valuation dates was deductible ? " In assessment proceedings under the Wealth-tax Act for the assessment years 19....

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....r of Wealth-tax, that in order to consider whether a tax liability should be taken as a debt owed for the purposes of computing the net wealth as defined in section 2(m) of the Wealth-tax Act, all that is necessary is that the tax liability should have accrued and that it is not imperative that it should also have been quantified by an assessment order. In this view of the matter it is plain that ....

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....which the aggregate value .... of all the assets, wherever located belonging to the assessee on the valuation date, . . . . is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than,-... (iii) the amount of the tax,...payable in consequence of any order passed under or in pursuance of ... any law relating to taxation of income or profits,... (....

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....eing payable by him, is nevertheless outstanding for more than twelve months on the valuation date. The Indian Income-tax Act, 1922, is a law relating to the taxation of income or profits. There must be an order passed under or in pursuance of that Act requiring the payment of tax. Tax becomes payable when an assessment order is made. Here, admittedly, the assessment proceedings in each case had n....