COMMISSIONER OF WEALTH TAX Vs. VARMA S K

JUDGEMENT

(1.) A very short point arises for determination in this wealth -tax reference in which the following question has been referred to us under of the Wealth -tax Act, 1957 :

(2.) THE reference arises out of the assessment under the Wealth -tax Act on an individual for the year 1962 -63, the corresponding valuation date being March 31, 1962.

(3.) MR . Joshi on behalf of the Commissioner drew our attention to a decision of the Madras High Court in T. V. Sundaram Iyengar and Sons (P.) Ltd. v. Commissioner of Wealth -tax : [1969]72ITR107(Mad) , where a distinction has been made of charge under sections 3 and 4 of the Act and liability to additional super -tax by reason of section 23A. The view taken was that before an order was passed under section 23A, the possible liability to super -tax under that section could not be said to have ripened into a debt. It was contended before the Madras High Court that the liability to pay additional super -tax under section 23A sprang not from the order which the Income -tax Officer may make, but from section 23A itself. The Division Bench of the Madras High Court considered the scheme of section 23A and observed at page 113 : 'The structure of section 23A and the manner in which the liability to additional super -tax arises thereunder leave no room for doubt that the liability is not charged automatically by statutory force but arises only after consideration of and decision on various factual factors to be found by him.'