COMMISSIONER OF WEALTH TAX Vs. B K CHATTERJEE

JUDGEMENT

(1.) THESE references relate to the assessment years 1970-71 to 1975-76. In all these years, the following common question of law has been referred by the Tribunal to this court under Section 27(1) of the Wealth-tax Act, 1957 :

(2.) THE facts which are admitted and/or found by the Tribunal are as under :

(3.) THE Assessing Officer's understanding of the provision is that the liability may be either in consequence of any order passed under the various Acts referred to in the provision or any liability arising in pursuance of any such Act. According to him, the linkage of the expression "or in pursuance of this Act or any law relating to taxation of income or profits, etc.", is not with the participle "passed" following the word "any order" but with the adjective "payable". Thus, he reads the provision to mean, that any amount of tax, penalty or interest payable in pursuance of any law relating to taxation of income or profits, etc., besides any such amount payable in consequence of any order passed under any such law, is also embraced by the said exclusionary clause. According to him, the phrase "in pursuance of" dispenses with the necessity of the tax liability arising invariably from an order passed under any of the relevant Acts. THE exclusion applies even to any liability payable in pursuance of any provision of the relevant Acts irrespective of whether the liability arises from any order passed thereunder or not.