JAGDISAN J.

Messrs. Pierce Lesile & Co. Ltd., which is a non-resident company, was assessed to tax under the Wealth-tax Act, 1957, for the assessment year 1957-58. We shall refer to this company as the assessee in this judgment. It field a return under the Act stating that its net wealth was Rs.59, 51, 073. In computing this net wealth the assessee claimed as deduction a sum of Rs.33, 24, 609 as a debt due and owing which ought to be taken into account in fixing the taxable value under the Act. The break of this figure, Rs.33, 24, 609 was as follows

1. The amount of income-tax demanded as per Rs.10, 22, 463

order under section 18A of the Indian Income-

tax Act and outstanding on the valuation date

3th June, 1956

2. Amount of income-tax due and payable on the Rs. 2, 56, 762

valuation date as per notice of demand under

section 29, Indian Income-tax Act

3. Estimated reserve for liability to pay income- Rs.20, 45, 384

tax not assessed on the valuation date, but for

which provision was made by the assessee in

anticipation of a future liability

The Wealth-tax Officer, , Madras disallowed the deduction claimed and computed the net wealth of the assessee at Rs.92, 95, 104. The assessee pref