COMMISSIONER OF WEALTH TAX Vs. GEORGE DOMINIC

JUDGEMENT

(1.) THESE three references made under Section 27(1) of the Wealth-tax Act, 1957, raise the following question :

(2.) THE assessee, a shareholder in a private limited company, claimed that in computing the value as per the balance-sheet of the company, the advance tax paid by the company should not be adjusted against the provision for payment of taxes. THE Wealth-tax Officer and the Appellate Assistant Commissioner did not accept the said claim. On second appeal before the Income-tax Appellate Tribunal, Cochin Bench, the Tribunal held that the value must be determined by taking the provision for taxation as shown in the balance-sheet as a liability and without adjusting the same against the advance income-tax paid. Since there was a conflict of judicial opinion among various High Courts, the question mentioned hereinabove was referred to this court for our decision.

(3.) A copy of this judgment under the seal of this court and the signature of the Registrar shall be sent to the Income-tax Appellate Tribunal, Cochin Bench, Cochin, for passing consequential orders.