COMMISSIONER OF WEALTH TAX (CENTRAL)CALCUTTA vs M/S. STANDARD VACUUM OIL CO. LTD.

The Supreme Court held that the arrears of tax determined under Section 18A of the Income Tax Act, 1922, constitute a debt owed within the meaning of Section 2(m) of the Wealth Tax Act, 1957, as long as the demand notice is issued and no new estimate is made by the assessee. The Court affirmed the High Court's ruling that the amounts mentioned in the demand notices were debts owed on the valuation dates, thereby allowing their deduction in the computation of net wealth. The appeal by the Commissioner of Wealth Tax was dismissed.