TMI Blog1972 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... to 1964-65 ? " - we hold that section 2(m) of the Act is not applicable and as such the income-tax liability of the firm is to be deducted out of the total wealth of the firm for purposes of ascertaining the assessee's share in that firm - Question answered in the negative in favour of the assessee and against the department - - - - - Dated:- 30-8-1972 - Judge(s) : C. S. P. SINGH., R. L. GULA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the firm had to be taken into consideration. While computing such a share the Wealth-tax Officer took the net wealth of the firm as per its books of accounts ignoring its liability on account of the outstanding income-tax dues. The assessee contended that the income-tax liability of the firm should have been deducted out of its wealth in order to arrive at the net wealth of the firm. The Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law in the case of Padampat Singhania. In that case this court has held that section 2(m) is not applicable to a case like the present one. For the reasons given in that judgment we hold that section 2(m) of the Act is not applicable and as such the income-tax liability of the firm is to be deducted out of the total wealth of the firm for purposes of ascertaining the assessee's share in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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