COMMISSIONER OF WEALTH TAX Vs. R K DEO

JUDGEMENT

(1.) THE Cuttack Bench of the Wealth -tax Tribunal, has stated these cases pursuant to the direction of this Court at the instance of the Revenue, under S. 27 of the WT Act of 1957 and the following common question has been referred for our opinion :

(2.) THE relevant assessment years are 1970 -71 and 1971 -72, The assessee declared a net wealth of Rs. 41,21,486 for the first assessment year and Rs. 41,04,502 for the second assessment year but did not claim any deduction on account of liabilities in respect of income -tax, wealth -tax and other taxes on the relevant valuation dates.. The WTO did not allow any such liability to be deducted in the matter of computation of net wealth.

(3.) THE Revenue challenged the aforesaid decision of the AAC by preferring second appeals to the Tribunal. It was contended in the second appeal that there was no justification for the AAC to give the direction as indicated above. No demand was outstanding on the particular valuation date and no demand notice had yet been served on the assessee. The Tribunal did not agree with the contention advanced on behalf of the Revenue as in its opinion the direction of the AAC was in accord with the ratio in the Gujarat case. The Tribunal also found that there was no infirmity in the order of the first appellate authority as it had only directed the WTO to keep the principles laid down in the decisions in view while disposing of the appeals. The Tribunal did not, therefore, interfere with the appellate order.