TMI Blog1970 (8) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... G. OAK., H. N. SETH. JUDGMENT The judgment of the court was delivered by V. G. OAK C.J.-This is a reference under the Wealth-tax 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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd in the circumstances of the case, the amount of Rs. 8,47,130 being provision for payment of income-tax and super-tax in respect of assessments 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 weal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on March 31, 1957, which was the valuation date, and as such deductible in computing the net wealth of the appellant-company. It was held 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 pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 78,900 should be distributed as dividend. There was no existing liability. Consequently, the proposed dividend of Rs. 3,78,900 was not deductible 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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