TaxTMI 
TaxTMI 
1973 (6) TMI 14
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act, 1965, is not liable to be taxed. According to them, the income-tax due on the income declared according to the provisions in section 68 of the Finance Act, 1965, must be deducted from the income declared and the net wealth arrived at. The contention is based on the definition of " net wealth " in section 2(m) of the Wealth-tax Act, 1957, which is in these terms : " ' net wealth ' means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ear 1965-66 in Writ Appeal No. 280 of 1971. Consequent on the declaration under section 68 of the Finance Act, 1965, and the assessment to income-tax steps were taken under section 17 of the Wealth-tax Act, 1957, to reopen the. wealth-tax assessments and what has been done is to add to the net wealth of the assessees for each of the years what we have mentioned, the entirety, of the income declared for that year under section 68 of the Finance Act, 1965. Counsel for the assessee has repeated the argument that was advanced by him before the learned single judge that the procedure adopted is not justified by the principles that are applicable to the case. There is no dispute that the valuation date for the four years with which we are conc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....larations under section 68 of the Finance Act, 1965, chair only arise at the time of the declaration and not on the valuation dates. With great respect, we are unable to agree with this view. The liability for tax arising out of the declaration under section 68 of the Finance Act, 1965, is nothing other that the liability under the Income-tax Act, 1961, which was the Act that was applicable. It is the charging section, section 4 of that Act, which has imposed the liability. This is so, notwithstanding the fact that enabling provisions have been made in the Finance Act, 1965, by permitting the assessees, if so minded, to make a declaration under section 68(2) of the Finance Act, 1965, and providing that the amount so declared will be taken a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....herein, or (iii) on or before the 31st day of May, 1965, pays such amount as is not less than one-half of the amount of income-tax as computed at the said rate or furnishes adequate security for the payment thereof in accordance with sub-section (4), and in either case assigns any shares in or debentures of, a joint stock company or mortgages any immovable property, in favour of the President of India by way of security for the payment of the balance, and undertakes to pay such balance within the period referred to in clause (ii). (2) The declaration shall be made to the Commissioner, and shall specify the period required to be specified under clause (ii) of sub-section (1), contain the name, address and signature of the person making....