STANDARD MILLS CO. LTD. vs COMMISSIONER OF WEALTH-TAX, BOMBAY CITY

The Supreme Court ruled on the deductions allowable under the Wealth Tax Act, 1957, specifically under Section 2(m) and Section 7(2)(a). The Court held that while the estimated income tax liability for the assessment year was deductible, the gratuity payable to employees was not, as it was contingent and not a present liability. The Court clarified that the Wealth Tax Officer must determine the net wealth by assessing the aggregate value of assets and debts on the valuation date, emphasizing that Section 7 pertains only to asset valuation, not debt computation.