Out of this, a sum of Rs.
Appeals by Special leave from the judgment and Order dated the 29th April, 1970 of the Allahabad High Court in T.R. Nos.
The Wealth Tax officer companyputed the net wealth of each companypany by adopting the figures of assets and liabilities as shown in their balance sheets as on their respective valuation dates after making such adjustments as he companysidered necessary but in both, the cases he disallowed the aforesaid claim for deduction on the ground that the liability was outstanding for more than 12 months on the valuation dates.
A. Ramachandran, Mrs. Janki Ramachandran, Miss A. Subhashini and Mrs. Sarla Chandra for the Appellant.
The Appellate Assistant Commissioner companyfirmed the disallowance of the amounts but for different a reason.
The assessee companypany claimed that the balance of the demand that had remained unpaid was a debt owed by it and should be allowed as a deduction while companyputing its net wealth for the companycerned year of assessment 1957 58.
He took the view that the tax liabilities assessed by the Income tax Investigation Commission had numberrelation to the assets or the declared wealth of the assessee companypanies, which were the basis of the wealth tax assessment and since the assets on which the said liability was assessed, namely, the secret profits were number included in the declared assets the disallowance was justified.
10,50,000 had been paid before the valuation date 30.9.1956 and Rs.
5,49,041 remained unpaid on that date.
T. Desai, B.P. Maheshwari and B.P. Singh for the Respondents.
The question arises in these circumstances M s. J.K. Cotton Manufactures Ltd., the assessee, is a limited companypany engaged in the manufacture of companyton textiles, etc.
The following Judgments were delivered TULZAPURKAR J, The only question raised in these appeals is whether the two sums of Rs.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
and the assessment involved is the wealth tax assessment for the year 1957 58 based on the valuation date 30.9.1956.
5,49,041 in the case of M s J.K. Cotton Ltd. and Rs.
21,61,788 in the case of K. Jute Ltd. being the balance of the demands payable as a result of the findings and orders of the Income tax Investigation Commission in the settlements made under the Taxation on Income Investigation Commission Act 30 of 1947 are deductible as debts owed by them in determining the net wealth of these companypanies ?
Out of this, a sum of Rs.
It appears that as a result of proceedings taken and a settlement arrived at in 1952 under the Taxation on Income Investigation Commission Act 1947, a sum of Rs.
In further appeals preferred by the assessee companies to the Tribunal, the reasons given by the Wealth Tax Officer as well as the Appellate Assistant Commissioner were assailed but without expressing any view on the validity or otherwise of the reason given by the Wealth tax Officer, the Tribunal companyfirmed the disallowance by substantially agreeing with the view expressed by the Appellate Assistant Commissioner.
1179 1180 NT of 1973.
15,99,041 was determined as payable by the assessee companypany on its secreted profits and a scheme for the payment of the said liability by instalments was laid down.
The assessee companypany claimed that the balance of the demand that had remained unpaid was a debt owed by it and should be allowed as a deduction while companyputing its net wealth for the companycerned year of assessment 1957 58 .
21,31,604 had been paid before the valuation date 31.12.1956 and Rs.
327 330 of 1964.
In the case of M s. J. K. Jute Mills Co. Ltd. the assessment involved under the Wealth tax Act is also for the assessment year 1957 58 but the valuation date is 31.12.1956.
In the case of this companypany also as a result of proceeding taken and a settlement arrived at in 1952 under the Taxation on Income Investigation Commission Act 1947 a sum of Rs.
21,61,788 remained unpaid on that date.
42,93,392 was determined as payable by it on its secreted profits and a scheme for the payment of the said liability by instalments was laid down.
