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1965 (10) TMI 20 - SUPREME COURTWhether, on the facts and in the circumstances of the case, in computing the net wealth of the assessee, the arrears of tax as determined as per notice under section 18A of the Indian Income-tax Act for the two assessment years under consideration constitute a debt owed by the assessee within the meaning of section 2(m) of the Wealth-tax Act as on the valuation date ? Held that:- High Court was right in answering the question in favour of the assessee. A debt is owed when an order under section 18A(1) is passed and a notice of demand sent. The amount mentioned in the notice begins to be owed till a new figure is substituted by the action of the assessee. On the valuation dates in these appeals, the assessee had not taken any action under section 18A(2), and consequently, the amounts mentioned in the notices of demand were debts owed within section 2(m) of the Wealth-tax Act on the valuation dates. Appeal dismissed.
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