Judgement

SIKRI, J. : Two questions were referred to the High Court by the Appellate Tribunal under S. 27 of the Wealth Tax Act (XXVII of 1957). We are only concerned with the second question which reads as follows:

"Whether on the facts and in the circumstances of the case, in computing the net wealth of the assessee, the arrears of tax as determined as per notice under S. 18A of the Indian Income-tax Act for the two assessment years under consideration constitute a debt owed by the assessee within the meaning of S. 2(m) of the Wealth Tax Act as on the valuation date?".

2. The facts and circumstances of the case are as follows. Demands in respect of the payment of tax under S. 18A of the Indian Income-tax Act were made against the respondent company, M/s. Standard Vacuum Oil Co. Ltd., for the two years ending December 31, 1956 and December 31, 1957, by notices of demand dated May 28 1956 and May 31, 1957, respectively. The final instalment of the amount of Rs. 47, 69, 653 for each of the two years was outstanding on the respective valuation dates. The assessee claimed that the demand for such tax should be allowed as deduction in determining the net wealth of the assessee under the W