A.V. Balasubramanyam, Judicial Member - (1.) THIS appeal by the assesses raises the question whether Mehr payable by a husband is a debt owed to be entitled to deduction in the computation of net wealth.
(2.) The assessee is a Shia Muslim. He married one Shehnabegum on 27-4-1977 in accordance with Shia faith at Northwood, England. Rs. 1,50,000 was the amount fixed as dower or Mehr for the marriage. In the wealth-tax assessment for 1979-80 (the valuation date being 31-12-1978), the assessee claimed this amount as an allowable liability in the return. The WTO treated this as a contingent liability and, therefore, he did not allow it. The assessee appealed and the AAC held that it was a deferred Mehr and the liability was not allowable. Aggrieved by the same, the assessee is in appeal. The learned counsel for the assessee contended that the amount of Rs. 1,50,000 payable by the assessee in this case is a prompt dower and as such allowable. The authorities below have reached the conclusion that it is a deferred Mehr. This is challenged by Sri Italia. Reliance was placed upon some observations of the Andhra Pradesh High Court in the case of CWT v. Khan Saheb Dost Mohd. Alladin [1973] 91 ITR 179 in support of his submission that prompt dower is a debt. On behalf of the revenue, it was stated that there is no evidence to indicate that the wife has demanded the amount and that till such a time the demand is made, there was no liability outstanding. On this premise, it was stated that there was no liability to be eligible for deduction.
(3.) THE assessee is a Shia Muslim whose marriage with Shehnabegum was performed according to Islamic faith. Under Islamic Law, marriage is not a sacrament but a civil contract. Mehr or dower is the amount or other property which the wife is entitled to receive from the husband in consideration of the marriage. While a prompt dower is payable by a husband on demand, a deferred dower is payable only on dissolution of marriage by death or divorce-See Articles 285 and 290, Principles of Mohmedan Law by Mulla (Sixteenth Edition, pp. 270-272).;