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1966 (1) TMI 21 - SC - Income Tax
Whether on the facts and circumstances of the case, the assessee-company is entitled to a deduction of ₹ 12,873 being the wealth-tax paid during the account year ended February 29, 1960, against the profits and gains of its business for the assessment year 1960-61 under section 10(2)(xv) of the Indian Income-tax Act ?
Held that:- In the light of the principles the amount of tax paid on the net wealth of an assessee under the Wealth-tax Act is not a permissible deduction under section 10(2)(xv) of the Indian Income-tax Act in his assessment to income-tax, for tax is imposed under the Wealth-tax Act on the owner of assets and not on any commercial activity. The charge of the tax is the same, whether the assets are part of or used in the trading Organisation of the owner or are merely owned by him. The assets of the taxpayer, incorporated or not, become chargeable to tax because they are owned by him, and not because they are used by him in the business. Appeal dismissed.