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TMI Blog1970 (8) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. Messrs. J. K. Cotton Spinning and Weaving Mills Co. Ltd. is the assessee. The assessment year is 1957-58. The valuation date is December 31, 1956. The assessee claimed various amounts as deductions for different debts. A deduction of a sum of Rs. 12,76,278 was claimed on account of tax liabilities. Deduction of another sum of Rs. 3,78,900 was claimed as proposed dividend. Thirdly, deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essments not completed on the valuation date was deductible in computing the net wealth of the assessee ? (2) Whether, on the facts and in the circumstances of the case, the provision for proposed dividend of Rs 3,78,900 was deductible in computing the net wealth of the assessee ? (3) Whether, on the facts and in the circumstances of the case, the sum of Rs. 20,94,027 being the balance of the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Supreme Court by a majority that all the ingredients of a debt were present. It was a present liability of an ascertainable amount. On this authority, it must be held that in the instant case the amount of Rs. 8,47,130 provided by the assessee for payment of income-tax and super-tax was deductible in computing the net wealth of the assessee. In the case of Kesoram Industries referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le in computing the net wealth of the assessee. The third question referred to this court relates to the demand payable as a result of certain orders and findings of the, Income-tax Investigation Commission. A similar question came up before this court in . K. Cotton Manufacturers Ltd. v. commissioner of wealth-tax (W.T.R. 327 of 1964, decided on April 29, 1970) . In that case it was held by this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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