Law:

Section:

Section 2(m) of the Wealth-tax Act, 1957-Net wealth-Debt owned-Assessee declared net wealth without claiming any deduction on account of liabilities of income-tax, wealth-tax, and other taxes on relevant valuation dates-Whether assesses entitled to deduction of said liabilities in computation of its net wealth-Held, yes Facts For the assessment years 1970-71 and 1971-72, the assessee declared its net wealth without claiming 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. On first appeal, the AAC directed the WTO to examine the claim of the assessee in respect of the aforesaid deduction in the light of the principles laid down in CWT v. Moon Mills Ltd. [1973] 88 ITR 427 (SC) and CWT v. Kantilal Manilal [1973] 88 ITR 125 (Guj.). On second appeal, the Tribunal found that there was no infirmity in the order of the AAC and he had only directed the WTO to keep the principles laid down in the decision in view while disposing of the appeals. The Tribunal did not, therefore, interfere with the appellate order. On reference under section 27(3): Held It was conceded that the assessee had not laid the claim for deduction. But the provisions of section 2(m) do not require, as a rule, claim for the same as a condition precedent for deduction. The Tribunal had recorded a finding of fact in clear terms about the entitlement of the assessee. Therefore, there was no justification to take a view different from the one that had been adopted by the Tribunal. Cases referred to CWT v. Kantilal Manilal [1973] 88 ITR 125 (Guj.) and CWT v. Moon Mills Ltd. [1973] ITR 427 (SC). Judgment R.N. Misra C.J..-The Cuttack Bench of the Wealth-tax Appellate Tribunal, has stated these cases pursuant to the direction of this court at the instance of the Revenue, under section 27 of the W.T. Act of 1957 and the following common question has been referred for our opinion : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the order of the Appellate Assistant Commissioner directing the…

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