Commissioner of Wealth-tax vs Chhotelal

The Income Tax Appellate Tribunal (Allahabad Bench) has referred the following question for the opinion of this court u/s 27(3) of the Wealth-tax Aet, 1957 :

" Whether, on the facts and circumstances of the case that may be found by the High Court on a reappraisal of the evidence, the Tribunal was justified in holding that the assessee was entitled to deduction of Income Tax liabilities as claimed and the deduction made thereof by the Wealth-tax Officer was correct in view of the provisions of Section 2(a)(iii)(b) of the Wealth-tax Act ?"

It would not be disputed that a similar question came up for consideration before this court in Commissioner of Wealth-tax Vs. B.K. Sharma, and there this court answered such question in favour of the assessee and against the Revenue.

Similar question was considered by the Supreme Court in Ahmed Ibrahim Sahigra Dhoraji Vs. Commissioner of Wealth Tax, Gujarat, and there the Supreme Court approved the view taken by this court in the case of Commissioner of Wealth-tax Vs. B.K. Sharma, .

Following the said decision, we decide the aforementioned question in the affirmative, in favour of the assessee and against the Revenue.

The reference is answered accordingly. No order as to costs.