TMI Blog1982 (1) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... 27 of the W.T. Act of 1957 and the following common question has been referred for our opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the order of the Appellate Assistant Commissioner directing the Wealth-tax Officer to allow deduction of tax liabilities in accordance with the principle laid down by the courts ? " The relevant assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o re-determine the claim for deduction on the basis of the propositions referred to. The Revenue challenged the aforesaid decision of the AAC by preferring second appeals to the Tribunal. It was contended in the second appeal that there was no justification for the AAC to give the direction as indicated above. No demand was outstanding on the particular valuation date and no demand notice had ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been payable at a future date. The Supreme Court also held in 69 ITR 864, (H. H. Setu Parvati Bayi v. CWT), that the liability for wealth-tax becomes crystallised on the valuation date, and not on the first day of the assessment year though the tax may be quantified by assessment and may become payable after the commencement of the assessment year. " The first appellate authority referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 ....... (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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... precedent to the deduction. The Tribunal has recorded a finding of fact in clear terms about the entitlement of the assessee. We must assume that the provisions of law were known to the Tribunal and on the basis of the provisions indicated above, the Tribunal came to hold that the requisite conditions had been satisfied and the demand was open to be made. We do not think, there is any scope for d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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