9911796707
TMI Blog1988 (1) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... w and in fact in not allowing deduction of liability to pay interest charged and penalty levied by the tax authorities in the appellant's case under various statutes for different years, in the computation of net wealth, as claimed by the appellant, i.e, from the (first) relevant valuation date of the respective assessment year till the (last) valuation date falling within the period of twelve mon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being 31st March of each of these years. 3. The short point for consideration in all these appeals is whether the penalties imposed on the assessee under ss. 18(1)(a)(b) & (c), 271(1)(c) and 273 and interest thereon are allowable as "debts" within the meaning of s. 2(m) on each of the valuation dates. In other words what the assessee seeks to canvass before us is that although the penalties and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lines similar to the ones as directed by the CWT(A) in para 4(a) of his order (Wealth-tax liability). In other words a modification was sought for in the directions of the CWT(A) obtained in para 4(b). 6. The learned Departmental Representative on the other hand, strongly supported the action of the CWT(A). According to him, the claim of the assessee was not tenable since he had challenged the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion date respectively. It is the final determination which will decide the quantum that is to be allowed as a deduction. This is what the Supreme Court has decided in the case of K.S.N. Bhatt. This decision however cannot be stretched to rope in penalty as well as interest since their levy is uncertain and indeterminate on the relevant valuation date. It is an admitted fact that the penalties and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... own way and under specified circumstances i.e. subject to the provisions of s. 2(m)(iii) of the Act. 9. We accordingly uphold the action of the CWT(A) in respect of the assessee's claim pertaining to penalties and interest thereon. In the light of this decision we do not find it necessary to deal with the arguments of the Departmental Representative pertaining to s. 2(m)(iii)(a) and the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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