CALCUTTA ELECTRIC SUPPLY CORPORATION vs COMMISSIONER OF WEALTH TAX, WEST BENGAL

The Supreme Court held that under Section 7(2) of the Wealth Tax Act, 1957, the Wealth Tax Officer is authorized to accept the valuation of assets as shown in the balance sheet but is not bound to accept any deductions if deemed impermissible. The Court ruled that the service connections, although funded by consumers, were correctly included as the company's assets since there was no evidence to prove otherwise. The decision of the Appellate Tribunal allowing the deduction was overturned, affirming the Wealth Tax Officer's assessment.