9911796707
TMI Blog1972 (8) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 as representing the liability for payment of income-tax in respect of the assessment years 1955-56 to 1957-58. The Wealth-tax Officer held that this amount did not represent a final ascertained liability as on March 31, 1957, and as such it was not an allowable deduction. The assessee appealed to the Appellate Assistant Commissioner in respect of the said sum as well as other items which were disputed by him. We are not concerned in this reference with the other items of dispute. The Appellate Assistant Commissioner, however, allowed deduction in a sum of Rs. 17,456 towards the liability for income-tax and disallowed the claim for the balance. The assessee, thereafter, went in appeal before the Tribunal, and the Tribunal, without much d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 53, the Expenditure-tax Act, 1957, or the Gift-tax Act, 1958-- (a) which is outstanding on the valuatioin date and is claimed by the assessee in appeal revision or other proceedings as not being payable by him, or (b) which, although not claimed by the assessee as not being payable by him, is nevertheless outstanding for a period of more than twelve months on the valuation date." As per the amended provision it has of course to be shown by the assessee that the amount claimed as deduction towards income-tax liability is a debt which was owed by him on the valuation date. The amounts claimed as outstanding dues to the income-tax department towards the liability for income-tax in respect of the three years in question are these Rs. 1955- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessment year, though the tax was payable after it was quantified in accordance with ascertainable data in the assessment year, that liability to pay income-tax becomes a perfected debt at any rate on the last day of the accounting year and that, therefore, it cannot be treated as a contingent liability after that date. Therefore, as on the valuation late, the income-tax liability for the year 1957-58 would have to be taken as a debt owed even though the amount of tax liability was quantified by the assessment order made on January 25, 1958. As regards the tax liability for the year 1956-57, it is seen that on the valuation date the amount of tax assessed was not disputed and that it was only at a later stage the assessee filed an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
