9911796707
TMI Blog1968 (9) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... s net wealth on the valuation date in question, i.e., December 31, 1956 ? " The facts giving rise to this reference are as follows : The assessee is a public limited company. The assessment year is 1957-58 and the relevant valuation date is December 31, 1956. In the present reference we are concerned with the item of Rs. 5,53,370 which was claimed as a debt deductible in computation of the net wealth of the assessee. The assessee had claimed in the year of assessment a deduction of a total item of Rs. 12,89,784, being the aggregate of the tax assessed for the assessment years 1943-44 to 1948-49. The assessments for these years had been completed and the tax liability of the assessee had been determined before the relevant valuation date. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m)(iii)(a) of the Act provided as follows : " 2. In this Act, unless the context otherwise requires- (m) 'net wealth' means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than--. . . (iii) the amount of the tax, penalty or interest payable in consequence of any order passed under or in pursuance of this Act or any law relating to taxation of income or profits, or the Estate Duty Act, 1953, the Expenditure-tax Act, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 20 of the Finance Act, 1959. In view of that retrospective effect, it is clear that, from the very commencement of the Wealth-tax Act, 1957, i.e., with effect from April 1, 1957, section 2(m)(iii)(a) must be read in the Act by operation of section 20 of the Finance Act, 1959. The result, therefore, is that the amount of Rs. 5,53,370, having been taken in appeal and claimed by the assessee as not being payable by it so far as the appeal proceedings were concerned, was not a debt deductible in computation of the net wealth of the assessee. It is clear that if this retrospective nature of the amendment had not been overlooked, the Tribunal would have held, as it was bound to hold, that this amount of Rs. 5,53,370, being the subject-matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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