K.S. Hegde, J. - (1.) In this appeal by special leave, the only question that we have to consider is whether on the facts and the circumstances of the case the tribunal was right in holding that the Income-tax liabilities amounting to Rs. 1,94,270/-was not allowable as a deduction in the computation of the net wealth of the assessee company in view of the proviso to Section 2(m)(iii) of the Wealth Tax Act, 1957. The assessee is ex parte.
(2.) Herein, we are concerned with the assessee's Wealth-tax assessment or the year 1959 60, the corresponding valuation date being the Calendar year ending December 31, 1958.
(3.) In the computation of the net wealth of the assessee as on the material valuation date, the Wealth-tax Officer refused to allow deduction in respect of a sum of Rs. 10,81, 971/-being the income-tax liability of the assessee. The major part of the amount represented the income-tax assessed and demanded from the assessee company in respect of the assessment year 1951-52, which had been disputed in appeal and was not paid on the valuation date. Before the App. Asstt. Commissioner and the Tribunal the claim for deduction was scaled down to Rs. 10,31,971/-. The Tribunal allowed deduction only in respect of the sum of Rs. 37,701/-being the last installment of advance tax demanded under Section 18A, which remained outstanding on the valuation date. Regarding the balance of Rs. 9,94,270/-being the amount of income tax liability which had been disputed by the assessee in appeal, the Tribunal held that it could not be allowed as a deduction in the computation of the net wealth in view of Section 2(m)(iii).;