1970 (4) TMI 56

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....unal has referred the following questions under section 27(1) of the Wealth-tax Act : " 1. Whether, on the facts and in the circumstances of the case, the amount of Rs. 13,54,243 being provision for payment of income-tax and super-tax was deductible in computing the net wealth of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the provision for proposed dividend....

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....s dismissed by the Appellate Tribunal. The Tribunal has found that the amount of Rs. 13,04,243 represented assessed taxes which were outstanding for more than one year on the valuation date or which were in dispute, and apparently held that it could not be treated as a "debt owed" for the purpose of computing the net wealth as defined in section 2(m) of the Wealth-tax Act, because of section 2(m)(....

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....red as follows : " Out of the amount of Rs. 13,54,243 provided for payment of income tax and super-tax a sum of Rs. 50,000 is deductible in computing the net wealth of the assessee while the sum of Rs. 13,04,243 is not so deductible. As regards the second question, namely, whether the provision for proposed dividend of Rs. 22,500 was deductible in computing the net wealth of the assessee, the p....