TMI BlogA contingent debt has no present existence and is not a debt as understood in law unless the contingency happens.X X X X Extracts X X X X X X X X Extracts X X X X ..... the above subject and the report furnished to the Board about the procedure being followed by the W.T. Officers in different charges. The question as to whether fees outstanding on the valuation date, of professional persons maintaining accounts on cash basis, can be included in the net wealth for the purposes of wealth-tax assessment has been examined. 2. It is now well settled that in its ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sum by way of fees to a person following a profession, the said sum would be a "debt" due to the latter and would be includible in his net wealth. The Andhra Pradesh High Court in the case of Vadrevu Venkapparao vs. C.W.T. (69 ITR 552), have also held that interest accrued on the valuation date on loans and advances was liable to be included in the net wealth even though the accounts of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , while under the income-tax Act the income chargeable shall be computed in accordance with the method of accounting regularly employed by the assessee the W.T Act only provides that the W.T. Officer may have regard to the balance-sheet of such business as on the valuation date. 4. In view of what is mentioned above, the Board are advised that the right of a chartered accountant, doctor, lawyer ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
