TaxTMI 
TaxTMI 
1988 (8) TMI 4
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.... referred to this court under section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1971-72, 1972-73 and 1973-74 : " Whether, on the facts and in the circumstances of the case, the amounts representing the arrears of wealth-tax and income-tax of the assessee's predecessor in title can be taken into account in computing the net wealth of the assessee ? " The facts are in a narrow co....
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.... claimed his share of tax liabilities as a deduction from out of the properties inherited by him. Similar was the case with his mother, Smt. Durgamani Mullick. The Wealth-tax Officer rejected the claim of the son and the mother on the ground that these were not tax liabilities in their hands and as such could not be allowed by virtue of section 2(m)(iii)(b) of the Act. The Appellate Assistant Comm....
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....urgamani Mullick was not acceptable, with the result that the matter was referred to the President who, in turn, placed the appeals before the Special Bench. The Special Bench, inter alia, held that what the assessee in this case inherits is only the net property and that should be treated as an asset for the purpose of wealth-tax. In so far as the assessee is concerned, the asset that comes to h....
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....ue cannot contend that the liabilities attached to the assets inherited should not be taken into account in computing the net wealth for the purpose of wealth-tax. Even assuming that no charge was created in respect of the arrear taxes, the assessee had the obligation to meet the said liability in respect of the assets inherited by him. As a matter of fact, the Revenue could claim a slice of the a....