ASSAM OIL COMPANY LIMITED STANDARD MILLS COMPANY LIMITED Vs. COMMISSIONER OF WEALTH TAX CENTRAL CALCUTTA :COMMISSIONER OF WEALTH TAX CENTRAL CALCUTTA

JUDGEMENT

(1.) These two appeals, which are cross-appeals, arise out of the same Judgement of the High court of Calcutta. The former was filed by the Assam Oil Company Ltd., and the latter, by the Commissioner of Wealth-tax (Central), Calcutta. The following two questions were referred to the High court for its decision :

(2.) A division bench of the Calcutta High court answered the first question in the negative and the second question in the affirmative.. The correctness of the answer to the first question is canvassed in Civil Appeal No. 66 of 1965 and that of the second question, in Civil Appeal No. 67 of 1965.

(3.) We have held in Kesoram Industries & Cotton Mills Ltd. V/s. Commissioner of Wealth-tax, in which Judgement was just now delivered, that the liability to pay tax under the Indian Income-tax Act is a debt owed by the assessee on the relevant valuation date within the meaning of clause (m) of section 2 of the Wealth-tax Act. Following that judgment, we answer the first question in the affirmative. The result is that Civil Appeal No. 66 of 1965 is allowed with costs.