COMMISSIONER OF INCOME TAX Vs. AMCO BATTERIES P LIMITED

JUDGEMENT

(1.) THE assessee is a private limited company. Its total wealth was computed at Rs. 15,89,013 by the Wealth-tax Officer under the Wealth-tax Act, rejecting the claim of the assessee for a deduction from the above the provision for income-tax and wealth-tax and the amount of proposed dividend on the ground that these liabilities had not become ascertained liabilities as on March 31, 1959, which was the valuation date.

(2.) THE provision for income-tax and wealth-tax amounted to Rs. 5,15,400.

(3.) THE Appellate Assistant Commissioner rejected the claim holding that the tax liability does not ripen into a debt unless the demand notice quantifying the tax payable was served upon the assessee and that prior to such a service, there was no enforceable right in the Government against the assessee. He relied on the decision in Doorga Prosad v. Secretary of State and other decisions. He also referred to the amendment to section 2(m) by clause 20 of the Finance Act. THE order of the Appellate Assistant Commissioner is annexure "A" and forms part of the case.