JOSEPHINE PINTO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference made under Section 27 of the Wealth-tax Act read with Section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Indore, has called for the opinion of this court on the following question of law ;

(2.) THE facts giving rise to this reference, as per the statement of case received may be stated, in brief, thus : THE assessee, Smt. Josephine Pinto, a citizen of India, is assessed as an individual and the assessment years involved are 1971-72 to 1974-75. THE relevant valuation dates are December 31, 1970, December 31, 1971, December 31, 1972, and December 31, 1973, respectively. THE assessment orders dated February 24, 1979, indicate that the returns of wealth-tax for all these years were filed on June 23, 1978. THE Wealth-tax Officer disallowed the assessee's claim in respect of income-tax liabilities observing that the amounts claimed are not admissible in view of the provisions of Section 2(m)(iii)(a) and (b) of the Wealth-tax Act, 1957, and that further the liability claimed was not an ascertained liability on the valuation dates. THE assessee had claimed deductions pertaining to the income-tax liability as per details given below : <FRM>JUDGEMENT_674_ITR158_1986Html1.htm</FRM>

(3.) THE assessee, therefore, filed an appeal before the Appellate Assistant Commissioner of Wealth-tax, who by his consolidated order dated February 26, 1981, dismissed the same. THE assessee thereafter approached the Income-tax Appellate Tribunal, Indore, which by its order dated February 12, 1982, also dismissed the same. THEreafter, the assessee submitted an application before the Tribunal with a prayer to refer the following questions of law :