COMMISSIONER OF WEALTH TAX KERALA Vs. HARRISON AND CROSSFIELD LTD
LAWS(KER)-1964-7-42
HIGH COURT OF KERALA
Decided on July 09,1964

COMMISSIONER OF WEALTH TAX, KERALA Appellant
VERSUS
HARRISON AND CROSSFIELD LTD., QUILON Respondents

JUDGEMENT

- (1.) THIS is a reference under Section 27 (1) of the Wealth-tax Act, 1957. Three assessment years are covered by the reference. They are 1957-58, 1953-59 and 1959-80.
(2.) THE questions referred are worded as follows: Assessment year 1957-58; -Whether in the circumstances and on the tacts of the case, the Income- tax appellate Tribunal was correct in allowing deduction from net taxable wealth of (a)provisions for payment of taxes, (b) reserve in respect of a shipping claim and (c)provision for lay off compensation in a tile works ? assessment year 1958-59: -- Whether in the circumstances and on the facts of the case, the Income-tax Appellate Tribunal was correct in allowing deduction from net taxable wealth of (a) provision for payment of taxes, (b) reserve in respect of a shipping claim, (c) provision for lay off compensation in a tile works, (d) furlough reserve at Quilon, (e) furlough reserve of Calcutta, (i) staff retirement gratuity reserve, and (g) special passage reserve ? assessment year 1959-60: -- Whether in the circumstanees and on the facts of the case, the Income-tax Appellate Tribunal was correct in allowing the deduction from the net taxable wealth of (a) provision for taxes, (b) reserve in respect of a shipping claim, (c) provision for payment of lay off compensation in a tile works, (d) furlough reserve and (e) special passage reserve ? there can be no doubt that these questions are badly worded, No question of a deduction from the net taxable wealth can possibly arise for consideration.
(3.) THE assessment provided by the Act is on the net wealth of the assessee as on the valuation date, Section 3, the charging section, says : ''subject to the other provisions contained in this Act, there shall be charged for every financial year commencing on and from the first day of april, 1957, a tax (hereinafter referred to as wealth-tax) in respect of the net wealth on the corresponding valuation date of every individual, hindu undivided family and company at the rate or rates specified in the schedule".;


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