COMMISSIONER OF WEALTH TAX Vs. SITA VENKATARAMANI

JUDGEMENT

(1.) T.C. Nos. 1978 to 1981 of 1984 are at the instance of the Commissioner of Wealth-tax, Tamil Nadu-I, Madras, and the Tribunal, Madras Bench `B', Madras, has stated a case and referred the following question of law under section 27(1) of the Wealth Tax Act, 1957 (hereinafter referred to as 'the Act'):

(2.) T.C. No. 1269 of 1990 is also at the instance of the Commissioner, Tamil Nadu-I, Madras, and the Tribunal has stated a case and referred the following question of law under section 27(1) of the Act:

(3.) THE revenue carried the matter in appeal before the Tribunal, on the ground that the liability was received by the assessees as a result of the partial distribution of the assets of the assessees' father and the liability could be regarded as a contingent liability. THE Tribunal, however, rejected the contention of the revenue and held that there is nothing to show that the liability was fastened on the assessees as legal representatives of the deceased, and the Tribunal held that the liability could not be regarded as a contingent liability. THE Tribunal also held that the liability was incurred after the death of late Anantharamakrishnan and the liability could not be stated to be a liability incurred by late Anantharamakrishnan and fastened on the legal representatives except the debt due to Higginbothams (P) Ltd. THE Tribunal, therefore, held that the assessees are entitled to claim deduction of the liability in the computation of net wealth of the assessees and dismissed the appeals preferred by the revenue. Similar view was taken by the Tribunal in other cases also which are the subject-matter of other tax case references before us and the department has challenged the orders of the Tribunal and the questions of law as stated earlier have been referred by the Tribunal for our consideration.