| Case ID |
1a32f6ed-2d56-474e-9155-7850fc879263 |
| Body |
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| Case Number |
No. 135 of 1977 |
| Decision Date |
Dec 09, 1982 |
| Hearing Date |
|
| Decision |
The court ruled that the income-tax dues for which demand notices were served on the assessee before the valuation date are not allowable as deductions if an appeal was filed after the valuation date. The tribunal's decision to allow the deduction was upheld, stating that the mere fact of filing an appeal after the valuation date does not affect the claim for deduction. The court emphasized that the tax amount was outstanding on the relevant valuation date, thus qualifying for deduction under the applicable section of the Wealth-tax Act. |
| Summary |
This case revolves around the interpretation of Section 2(m)(iii)(a) of the Wealth-tax Act, 1957, concerning the treatment of income-tax liabilities in wealth assessments. The petitioner, A. Raghunath, sought to claim a deduction for income-tax liabilities that were disputed but had been formally served prior to the valuation date of March 31, 1972. The court examined whether such liabilities could be deducted despite an appeal being filed after the relevant valuation date. The decision clarified that outstanding tax liabilities must be considered in determining net wealth, thus providing a significant precedent for similar future cases. The ruling underscores the importance of the timing of tax assessments and appeals in wealth-tax calculations, making it a pivotal case in tax law interpretation. |
| Court |
High Court
|
| Entities Involved |
Not available
|
| Judges |
K. Punnayya,
B.P. Jeevan Reddy
|
| Lawyers |
M.S.N. Murthy,
Y.V. Anjaneyulu
|
| Petitioners |
A. Raghunath
|
| Respondents |
Commissioner of Wealth Tax
|
| Citations |
1983 SLD 1177,
(1983) 143 ITR 233
|
| Other Citations |
P. Appavoo v. CWT [1973] 91 ITR 138 (Mad.)
|
| Laws Involved |
Wealth-tax Act, 1957
|
| Sections |
2(m)(iii)(a)
|