Law:

Section:

Section 2(m) of the Wealth-tax Act, 1957 - Net wealth - Debt owed Where assessee received a sum from Coffee Board being refund of sales tax on ground that no sales tax would be leviable on export sales, such sum was to be included in assessee's wealth; undertaking to return amount subject to fulfillment of certain condition would not change character of the receipt [A.Y 1990-91] The assessee claimed that the said sum was not includible in its wealth since the amount would have to be deposited with the Government if the decision went against the Coffee Board. The Assessing Authority, however, rejected the plea and included the same. The Tribunal upheld Assessing Officer's order Held that it was seen from the order passed by the Tribunal in the proceedings relating to the Income-tax Act that the liability in the hands of the assessee had been confirmed as regards the interest earned on the amount received as a refund. In the course of the order, the Tribunal had pointed out that even as on the date of the passing of the order by the Tribunal in the income-tax proceedings, no action had been taken by the tax authorities to confer the liability on the Coffee Board and had not credited the amount though refund was stated to be payable. The Tribunal also noted that the issue was concluded by the decision of the Supreme Court. The assessee could not controvert the statement recorded in the order. In the circumstances there was no merit in the contention of the assessee to interfere with the order passed by the Tribunal. It may be noted that the order under the wealth-tax Act itself was passed after considering the order passed in the proceedings taken in the Income-tax Act. The undertaking to return the amount subject to fulfillment of certain condition would not change the character of the receipt. JUDGMENT Mrs. Chitra Venkataraman, J.-This tax case reference arises at the instance of the assessee under the Wealth-tax Act, 1957. This relates to the assessment year 1990-91. The question of law raised is as follows : "Whether on the facts and in the circumstances of the case the Appellate Tribunal is right in holding that the amount of Rs. 43,25,266 received from the…

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