1972 (3) TMI 2 - SC - Income Tax

Wealth-tax paid by a company on assets held by it for the purpose of its business was deductible as a business expenditure - Whether having regard to the provisions of the Wealth-tax Act of 1957 the allowance of wealth-tax liability was correct - Following our decision in Indian Aluminium Co. Ltd. v. Commissioner of Income-tax judgment delivered just now the appeal of revenue is dismissed

Summary

The Supreme Court dismissed the appeal in a case where M/S. Standard Vacuum Oil Co. Ltd. claimed to deduct wealth-tax payable for the assessment year 1959-60 from its assessable income. The Appellate Tribunal allowed the claim, stating that wealth-tax payments should be allowed in the years when they are actually paid. The High Court ruled in favor of the assessee, and the Supreme Court upheld this decision, citing a previous judgment in Indian Aluminium Co. Ltd. v. Commissioner of Income-tax.