TMI Blog1965 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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. - - - - - Dated:- 25-10-1965 - Judge(s) : K. SUBBA RAO., J. C. SHAH., S. M. SIKRI JUDGMENT The judgment of the court was delivered by SIKRI J.---Two questions were referred to the High Court by the Appellate Tribunal under section 27 of the Wealth-tax Act, 1957 (XXVII of 1957). We are only concerned with the second question which reads as follows : " Whether, on the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing its decision in Assam Oil Co. Ltd. v. Commissioner of Wealth-tax, answered the question in favour of the assessee. The revenue having obtained certificates of fitness from the High Court filed these appeals in this court. Mr. Viswanatha Sastri, learned counsel for the revenue, contends that on a true interpretation of section 18A the amount which is payable under it is not an ascertained amount as the assessee can estimate the amount which he should pay as advance tax. He says that the section contemplates more or less the opening of a running account between the State and the assessee and the exact amount is not finalised till the 15th of March each year, which is the last date by which the assessee has to exercise his option to pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act, there shall be charged for every financial year commencing on and from the first day of April, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in the Schedule. " The question with which we are concerned is whether the amounts directed to be paid by notices of demand dated May 28, 1956, and May 31, 1957, are " debts owed " by the assessee within section 2(m) on the respective valuation dates. Now the notices of demand were issued under section 18A(1) of the Income-tax Act. The exact notices of demand which were issued are not on record, but the learned counsel drew our attention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultimately becomes the debtor and there is no question of any debt being owed by the assessee. He further urges that the word " debt " connotes a definite fixed amount and does not include merely a liability to pay a sum which is not ascertained. In our opinion, the High Court was right in answering the question in favour of the assessee. Section 18A(10) provides that if the assessee does not submit a revised estimate under sub-section (2) of section 18A, and he does not pay on the specified date any instalment of tax that he is required to pay under sub-section (1), he shall be deemed to be an assessee in default in respect of such instalment or instalments, and if he does submit a revised estimate but does not pay an instalment in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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