COMMISSIONER OF WEALTH TAX Vs. SAHU JAIN LTD

JUDGEMENT

(1.) IN this reference under Section 27(1) of the Wealth Tax Ad by the Wealth Tax Tribunal, the following question of law was referred for our opinion:

(2.) THIS case was referred to a Full Bench mainly because of the conflicting decisions of the various High Courts about the true meaning of the expression "debt owed" occurring in the Wealth Tax Act But this point had been set at rest by the recent Judgment of their Lordships of the Supreme Court in Kesoram Industries and Cotton Mills Ltd. v. Commr. of Wealth Tax (Central) Calcutta, (1965) 58 I.T.R. Part 11, p. 37 (short notes of current cases) where their Lordships by a majority held that the liability to pay income-tax is a present liability even though it might not have been quantified in accordance with ascertainable data. Following this decision we must answer the question in the affirmative. There will be no order for costs.