Law: Wealth Tax Act, 1957

Section: 2(m)(iii)(a),(b)

Wealth tax--- ----Deductions---Burden of proof---Liability to pay income-tax and wealth tax---No evidence to establish claim---Liabilities not deductible---Indian Wealth Tax Act, 1957. If the assessee wants the benefit of a certain deduction it is for him to bring evidence to prove his claim: Held, that the fording recorded by the Tribunal was that the assessee had not brought any evidence to show that he had any liability to pay arrears of income-tax or wealth tax. The Tribunal was, therefore, justified in rejecting the claim for deduction of income-tax and wealth tax liabilities. JUDGMENT K.C. AGRAWAL, C.J.---The following question has been referred by the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") to this Court for decision: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in rejecting the claim of the assessee for the income-tax and wealth tax liabilities as claimed by the assessee?" The assessee claimed the deduction of the following liabilities for the assessment year 1971-72: Rs. (a) for Bharatpur firm 2,29,789 (b) for Karauli firm 2,86,609 (c) for Smt. Jigna Bai (deceased) 1,37,871 (d) for Sri Govind Narain (deceased) 12,33,359 (3) for self 3,06,666 For the assessment years 1972-73 and 1974-75, the assessee claimed deduction of liabilities amounting to Rs.20,69,294 and Rs.16,19,294, respectively. While rejecting the case of the assessee, the Income Tax Officer observed for the assessment year 1971-72 as under: "The liabilities are in respect of arrear demands in respect of income­ tax and wealth tax cases of the -assessee himself and Smt. Jignabai Tiwari; Govind Narain and proportionate liability of taxes in the firms in which the above persons were partners. In the spirit of section 2(m)(iii)(a) and (b), these liabilities cannot be allowed." In appeal, the Commissioner of Income-tax (Appeals) observed for the assessment year 1971-72 as under: "It was admitted by Shri Verma, learned counsel for the appellant, that these liabilities were more than 12 months old and some of them were continuing for the last several years. Moreover, no evidence was produced before me showing that the…

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