1992 (1) TMI 93

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....he following question of law has been referred by the Tribunal to this court under section 27(1) of the Wealth-tax Act, 1957 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in its decision that income-tax refunds determined after the valuation date should be considered as an asset for inclusion in the net wealth as oil the valuation d....

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.... been determined so far, could not be included in his net wealth. The Tribunal, however, held that the refunds could be considered as actionable claims as on the valuation date and, therefore, were includible in the net wealth. This issue has recently been decided by the Rajasthan High Court in CIT v. Rangnath Bangur [1985] 152 ITR 71 as well as by the Gujarat High Court in CWT v. Arvindbhai Ch....

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....ion date. It is, however, to be noticed that the Supreme Court in a series of cases has held that the tax liability as finally assessed, in spite of the uncertainty as to such quantification on the valuation date, shall relate back as an allowable debt on the valuation date. The mere fact that the computation of tile quantum of tax takes place years after the valuation date has been held to be ....

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....laid down that the tax as finally assessed should be the liability on the valuation date. If such a quantification culminates in refund by reason of the advance tax paid or tax deducted at source being in excess of such liability quantified, as a concomitant of the said ratio, the refund should also emerge as an asset on the valuation date. The refund may be non-includible if, in the assessment, t....