1991 (3) TMI 92

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....In this departmental reference relating to the assessee's wealth-tax assessment for the assessment years 1971-72 and 1972-73, the Tribunal has referred to this court two questions of law under section 27(1) of the Wealth-tax Act, 1957. The questions are : "1. Whether, on the facts and in the circumstances of the case, the liabilities as shown in the balance-sheet of Batliboi and Co. P. Ltd. as ....

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.... facts, counsel are agreed that, in view of our court's judgment in CWT v. Pratap Bhogilal [1987] 167 ITR 501,the first question requires to be answered in the negative and in favour of the assessee. As regards the second question, it is pertinent to mention that the provision for taxation included three items of Rs. 9,25,315, Rs. 10,24,496 and Rs. 6,89,663. The above liability was determined b....

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....er section 23A was not to be deducted from out of the liability. In other words, the value of the assets of the company will get reduced by such an amount for the purpose of computing the break-up value of the shares under rule ID of the Wealth -tax Rules, 1957. Shri Jetley, learned counsel for the Department, contended that when the liabilities were cancelled, it was not only open but the Weal....