- (1.) M/s. Standard Vacuum Oil Co. Ltd., the assessee, claimed to deduct Rs. 5,63,670 payable as wealth-tax for the assessment year 1959-60, from its assessable income for that year. The Income-tax Officer; disallowed the claim. The Appellate Assistant Commissioner upheld the order of the Income-tax Officer. The Appellate Tribunal, however, came to the conclusion that the expenditure incurred was incidental to business and allowed the claim of the assessee, observing that the wealth-tax payments should be allowed in the years when they are actually paid.
(2.) At the instance of the Commissioner of Income-tax, the following question was referred to the Court: Whether, on the facts and in the circumstances of the case, having. regard to the provisions of the Wealth-tax Act of 1957, the allowance of wealth-tax liability was correct
(3.) The Court answered the question in favour of the assessee. This judgment of the Court is dated November 24, 1964. The revenue; obtained certificate of fitness from the High Court and appealed to us.;