1983 (10) TMI 3

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..... 4 and 1964-65, wealth-tax for the assessment year 1964-65 and gift-tax for the assessment years 1962-63 to 1964-65 as determined payable on the basis of the assessment orders passed after the valuation date, and (ii) income-tax liability for the assessment years 1958-59 and 1960-61 and wealth-tax liability for the year 1961-62 created as a result of rectification orders passed after the relevant valuation date, in determining the value of the net wealth ? " In assessment proceedings under the W.T. Act for the assessment year 1964-65, the respondent-assessee claimed a deduction of Rs. 2,42,535 in the computation of her net wealth, on the ground that the amount represented the assessee's tax liabilities for different years. The WTO rejected .....

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..... is aspect of the case had not been considered by the AAC and, accordingly, the Appellate Tribunal directed the AAC to consider the case again and determine which of the liabilities were covered by the provisions of s. 2(m)(iii). On a reference being made to the Gujarat High Court at the instance of the Revenue on the questions of law set forth earlier, the High Court held that both questions were concluded by its judgment in CWT v. Kantilal Manilal [1973]88 ITR 125, and answered the questions in the affirmative. As regards the first question, we have already expressed our view on the point in our judgment in CWT v. Vadilal Lallubhai in Civil Appeals Nos. 1524 to 1547 of 1973. We need add nothing more on that point, and answer the question .....

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..... sel for the Revenue, urges that the judgment of the Gujarat High Court in Kantilal Manilal [1973]88 ITR 125, does not conclude the question arising on this claim because the High Court was concerned with a claim to deduction on account of income-tax, wealth-tax and gift-tax liabilities which had arisen before the WTO had completed the assessment before him. Be that as it may, it is well-settled that when an appeal is filed against an assessment order before the AAC, the assessment case is thrown open and the appellate proceeding constitutes a continuation of the assessment proceeding. Even if the tax liabilities, of which a deduction was claimed, were created by rectification orders or by assessment orders made after the date of the wealth- .....

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