1997 (11) TMI 18

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....NIAN J.--The following question of law has been referred by the Appellate Tribunal for our consideration under section 27(1) of the Wealth-tax Act, 1957 : "Whether, on the facts and in the circumstances of the case, in deducting the liability to wealth-tax for the assessment year 1973-74 as a debt owed on the valuation date December 31, 1973, the amount deductible is the tax estimated on the re....

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.... assessee filed an appeal to the Commissioner of Wealth-tax (Appeals) contending that the wealth-tax determined as payable for the assessment year 1973-74 should be allowed as a deduction towards the wealth-tax liability for the assessment year 1973-74. The Commissioner of Wealth-tax (Appeals) allowed the claim of the assessee and directed the Wealth-tax Officer to substitute the wealth-tax determ....

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....ability as determined by the Wealth-tax Officer as debt owed on the valuation date. The Appellate Tribunal, however, held that there is a conflict of view among the Supreme Court and therefore it felt that the matter should be referred to this court. Accordingly, at the instance of the assessee, the question of law mentioned earlier has been referred to us. We have gone through the order of the....

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....that the provisions of section 2(m)(iii) of the Act are attracted to the facts of the case. The decision of the Supreme Court in CWT v. K. S. N. Bhatt [1984] 145 ITR 1 and CWT v. Vadilal Lallubhai [1984] 145 ITR 7, are clear authorities for the proposition that the assessee is entitled to claim deduction of the wealth-tax liability as finally assessed or determined by the Wealth-tax Officer. Th....