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JUDGMENT Pathak, J.-The Appellate Tribunal has referred the following questions under section 27(1) of the Wealth-tax Act: "1. Whether, on the facts and in the circumstances of the case, the amount of Rs. 13,54,243 being provision for payment of income-tax and super-tax was deductible in computing the net wealth of the assessee ? 2. Whether, on the facts and in the circumstances of the case, the provision for proposed dividend of Rs. 22,000 was deductible in computing the net wealth of the assessee ? 3. Whether, on the facts and in the circumstances of the case, the sum of Rs. 21,61,788 being the balance of the demand payable as a result of the findings and orders of the Income-tax Investigation Commission is deductible in determining the net wealth of the company ?" As regards the first question, the facts are these: An amount of Rs. 13,54,243 had been provided for payment of income-tax and super-tax by the assessee, and the assessee claimed that this amount was a debt owed by it on the valuation date, December 31, 1956, relevant for the assessment year 1957-58. The claim was rejected by the Wealth-tax Officer and thereafter by the Appellate Assistant Commissioner of Wealth-tax. An appeal on the point was dismissed by the Appellate Tribunal. The Tribunal has found that the amount of Rs. 13,04,243 represented assessed taxes which were outstanding for more than one year on the valuation date or which were in dispute, and apparently held that it could not be treated as a "debt owed "for the purpose of computing the net wealth as defined in section 2(m) of the Wealth-tax Act, because of section 2(m)( iii) of the Act. It seems plain that section 2(m)( iii) prohibits the consideration of the said amount of Rs. 13,04,243 as a debt owed for the purpose of such computation. As regards the sum of Rs. 50,000 which represents provision made by the assessee for the payment of income-tax and super-tax for the accounting year ending on the valuation date, the Supreme Court has laid down in Kesoram Industries…

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