COMMISSIONER OF WEALTH TAX Vs. BANARASHI PRASAD KEDIA

JUDGEMENT

(1.) For the assessment year 1957-58, for which the relevant valuation date was 31st March, 1957, M/s. Banarashi Prasad Kedia filed a return of net wealth in the status of a Hindu undivided family. From the gross value of the assets shown, the assessee claimed a sum of Rs. 3,81,098 on account of income-tax liability as a deduction before arriving at the net wealth. The Income-tax Officer disallowed the entire amount on the ground that this was not admissible under the Act.

(2.) The assessee preferred an appeal from the decision of the Wealth-tax Officer to the Appellate Assistant Commissioner. It was contended before the Appellate Assistant Commissioner that the Wealth-tax Officer should have allowed deduction of income-tax liabilities before arriving at the net wealth of the assessee. The amount mentioned in the grounds of appeal before the Appellate Assistant Commissioner on account of income-tax liability was only Rs. 3,81,098 but in a statement filed at the time of hearing of the appeal before the Appellate Assistant Commissioner this amount had been shown as Rs. 7,47,181. It appears that the said sum of Rs. 7,47,181 consisted of the following items : <FRM>JUDGEMENT_159_ITR77_1970Html1.htm</FRM>

(3.) The Appellate Assistant Commissioner rejected the entire claim of the assessee and held that no portion of the sum of Rs. 7,47,181 claimed by the assessee as deduction could be allowed as debt owed within the meaning of Section 2(m) of the Wealth-tax Act, 1957.