COMMISSIONER OF WEALTH TAX Vs. SHIVRAM SINGH

JUDGEMENT

(1.) AS directed by this court, a statement of case has been submitted by the Income-tax Appellate Tribunal, 'B' Bench, Patna, under Section 27(3) of the W.T. Act, 1957, and the following question of law has been referred for the opinion of this court:

(2.) THE assessee is an individual. THE case relates to the assessment year 1964-65. THE WTO passed an order on August 31, 1970, under Section 17 of the W.T. Act, .1957, bringing to tax the value of premium prize bonds worth Rs. 9,80,000. THE assessee claimed before the WTO that in the recomputation of his net wealth, a sum of Rs. 5,88,000 being the income-tax liability attributable to the additional sum of Rs. 9,80,000 brought into tax under Section 17 should be deducted as a debt owed by him on the relevant valuation date which was November 15, 1963. THE assessee had disclosed on May 31, 1965, that he had been owning premium prize bonds worth Rs. 9,80,000. THE WTO did not allow the claim, as according to him, it was not an admissible deduction. On further appeal, the AAC by his order dated November 16, 1971, held that the income-tax liability claimed by the assessee was an admissible deduction and so he allowed the claim by his order in Appeal Nos. 88 and 87 C.C.D. of 1970-71.

(3.) IT was accordingly held that the assessee was entitled to the deduction of the income-tax payable on the assets voluntarily disclosed by him under Section 68 of the Finance Act, 1965.