T. V. SUNDARAM IYENGAR & SONS (PVT.) LTD. vs COMMISSIONER OF WEALTH — 1971 PTD 646

Citation: 1971 PTD 646

Court: Madras High Court

Year: 1970

Decision Date: 1970-12-31

Parties: T. vs SUNDARAM IYENGAR & SONS (PVT.) LTD. vs COMMISSIONER OF WEALTH JUDGMENT

Headnotes

Case cited as 1971 PTD 646

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title:T. V. SUNDARAM IYENGAR & SONS (PVT.) LTD. vs COMMISSIONER OF WEALTH JUDGMENT Reported As: 1971 PTD 646 Result: question decided Judgment JUDGMENT VEERASWAMI, J.-------In this wealth tax reference, the assessee must, in our opinion, succeed except to a part of its claim. It is a private limited company with its registered office at Madurai. For the assessm ent year 1959-60, it returned a not wealth of Rs. 47,76,173 as on December 31, 1958, the valuation date. This was arrived at after a deduction of Rs. 30,00,000 claimed to be the provision made for taxes due for the year ended with the valuation date. The Wealth Tax Officer declined to allow the deduction and on appeal a sum of Rs. 10,47,930 was allowed to be deducted. Both the assessee and the department appealed to the Tribunal, which, in effect, restored the order of the Wealth Tax Officer. Of the three questions, the first is: "Whether, on the facts and in the circumstances of the case, the sum of Rs. 1,15,768, representing the balance of tax for the year ending December 31, 1954, and the sum of Rs. 3,18,129, representing the balance of tax for the year ending December 31, 1957, are allowable deductions in the computation of the not wealth under the Wealth Tax Act?" This and the other two questions, which we shall presently reproduce, turn on whether the taxes for which provision has been made in the assessment year are debts owed by the…

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