Pathak, J. - (1.) These appeals are directed against the judgment of the Gujarat High Court disposing of a wealth tax reference and answering the following question of law against the Revenue:"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of S. 2(m)(iii)(a) were not applicable in respect of liabilities arising under the wealth tax assessments of the assessee for the assessment years 1960-61 and 1961-62 -
(2.) For the purpose of determining the assessee's net wealth in assessment proceedings under the Wealth-tax Act in respect of the assessment years 1961-62 and 1962-63, the corresponding valuation dates being March 31, 1961 and March 31, 1962, the assessee claimed a deduction of certain sums representing the estimated liabilities on account of income tax and wealth tax. The claim was rejected by the Wealth-tax Officer in both assessments, On appeal by the assessee, the Appellate Assistant Commissioner of Wealth Tax allowed a part of the claim. In the appeal pertaining to the assessment year 1961-62, he allowed a deduction of Rs. 22,679/- on account of wealth tax relating to the assessment year 1960-61, Rs. 36,692/- on account of wealth tax relating to the assessment year 1961-62. and Rs. 2,25,053/- on account of income tax for the assessment year 1961-62. In the appeal pertaining to the assessment year 1962-63, the Appellate Assistant Commssioner allowed the, total claim of Rs. 9,02,377/-, comprising a deduction of Rs. 39,692/- on account of wealth tax relating to the assessment year 1961-62, Rs. 77,716/- on account of wealth tax for the assessment year 1962-63 and the balance on account of income tax for the assessment year 1962-63. The Revenue appealed to the Appellate Tribunal. In the appeal for the assessment year 1961-62 it contended, inter alia, that the assessee was not entitled to a deduction of the wealth tax liability of Rs. 22,679/- in respect of the assessment year 1961-62 because he had disputed the said liability in appeal and, therefore, the deduction was barred by reason of S. 2(m)(iii)(a) of the Wealth-tax Act. Similarly, in the appeal for the assessment year 1962-63, the Revenue urged that the assessee was not entitled to a deduction of the wealth tax liability of Rs. 39,692/- for the assessment year 1961-62 as he had disputed that liability in appeal and the deduction was barred by S. 2(m)(iii)(a) of the Act. The Appellate Tribunal did not accept the contention of the Revenue and held that S. 2(m)(iii)(a) was not attracted in, respect of those liabilities as they had not become payable on the relevant valuation dates. At the instance of the Revenue, a reference, being Wealth Tax Reference No. 20 of 1970, was made to the Gujarat High Court for its opinion on the question of law set forth earlier.
(3.) It may be mentioned that another question was also framed in that reference, and that this reference as also several other references were disposed of together by the Gujarat High Court by its judgment in Commr. of Wealth-tax v. Kantilal Manilal (1973) 88 ITR 125. Against that judgment corresponding special leave petitions were filed by the Revenue in this Court, but all the special leave petitions, except Special Leave Petitions (Civil) Nos. 505 and 506 of 1973, arising out of Wealth-tax Reference No. 20 of 1970, were dismissed on the merits, and. in respect of these two special leave petitions the grant of special leave was restricted to the consideration of the question set forth earlier.;