COMMISSIONER OF WEALTH TAX Vs. H S AHUJA

JUDGEMENT

(1.) There are six petitions moved by the Commissioner of Wealth, tax, Delhi-1, Delhi, seeking a reference to this Court u/s 27 (3) of the Wealth-lax Act 1957, which relate to the assessment years 1971-72 to 1976-77. There was a consolidated order of the Tribunal for these six assessment years in appeal and a common order disallowing an application u/s 27 (1) of the Act. The question of law sought to be referred to this Court is as follows :

(2.) We have heard learned counsel for the petitioner, but the respondent has not appeared in spite of proper service. The facts show that the respondent-assessee is a Chartered Accountant whose wealth-tax assessment was made for the six years under consideration. The relevant valuation dates were 31.12.70 to 31.12.75, for the six years. The W.T.O. estimated that there were some outstanding professional fees due to the assessee in each year and this amount had varied between Rs. 10,000.00 and Rs. 20,000.00. He was of the view that this amount was also to be included in the computation of the wealth of the assessee under the Act. It was the contention of the assessee that this amount could not be included as he was maintaining a cash system of accounting which was evident from the balance-sheets under consideration. But, the W.T.O. treated the amounts in question as a kind of debt. In his view these were recoverable debts and the amount was thus to be included in the wealth of the assessee.

(3.) The assessee appealed to the Appellate Assistant Commissioner who allowed the appeal holding that the matter was covered by a decision of the Orissa High Court, Commissioner v. Vysyaraju (1971) 79 I.T.R. 330. The additions made to the wealth-tax were accordingly deleted.