Judgment

SIKRI, C.J.I. :- (on behalf of self, A. N. Grover, J., A. N,. Ray, J. and D. G. Palekar, J.): These appeals have been referred by a Division Bench of this Court to a larger Bench as the Division Bench felt that the decision of this Court in Travancore Titanium Product Ltd. v. Commr. of Income-tax (1966) 3 SCR 321 might require reconsideration. The only point involved in these appeals is whether the Wealth Tax paid by the assessee, a trading company, is deductible as an expenditure under S. 10 (1) and S. 10 (2) (xv) of the Income-tax Act, 1922. The facts in both the appeals are similar. They relate to two separate accounting and assessment years and two assessment orders have been challenged. We may give a few facts in one appeal. The Indian Aluminium Co. Ltd., in respect of the year of assessment 1959-60 (accounting period Calendar year 1958), paid Rs. 1,59,630/- as Wealth Tax and claimed to deduct this amount as expense from their assessable income. The Income Tax Officer allowed the deduction but the Appellate Assistant Commissioner held that the Company was not entitled to the deduction of Wealth Tax as an expense. The Appellate Tribunal upheld the order of the Appellate