Ajit K. Sengupta, J. - (1.) In this reference under Section 27(3) of the Wealth-tax Act, 1957, the following question of law has been referred to this court for the assessment years 1967-68 to 1970-71 : "Whether, on the facts and in the circumstances of the case, the income-tax and wealth-tax liability on income and wealth voluntarily disclosed by the assessee under Section 14(1) of the Voluntary Disclosure of Income and Wealth Ordinance, 1975, subsequent to the valuation date is an admissible deduction in computing the net wealth of the assessee for the assessment years 1968-69 to 1970-71 ?"
(2.) Shortly stated, the facts are that the Wealth-tax Officer reopened the assessments for the said years finalised earlier as a sequel to the disclosure of income and wealth made by the assessee under the concerned Ordinance, 1975, as a result of a search conducted by the Department The concealed wealth disclosed by the assessee was added back by the Wealth-tax Officer but he did not allow the income-tax and wealth-tax liabilities arising out of such disclosure for these years as the liability was not admitted by the assessee earlier and it arose only in 1975,
(3.) On appeal to the Appellate Assistant Commissioner, he allowed the claim of the assessee. On appeal by the Revenue, the Appellate Tribunal decided the matter in favour of the assessee holding that such income-tax and wealth-tax liabilities constituted a debt under Section 2(m) of the Wealth-tax Act, 1957.;