BURMA OIL CO. (I) TRADING LTD. CALCUTTA vs COMMISSIONER OF WEALTH TAX (CENTRAL) CALCUTTA

The Supreme Court held that the amount of Rs. 49,19,520/- set aside by the appellant for tax liabilities constituted a debt under clause (m) of Section 2 of the Wealth Tax Act, 1957, and was deductible in computing net wealth as of the relevant valuation date, December 31, 1957. The Court followed its earlier decision in Assam Oil Co. Ltd. v. Commissioner of Wealth Tax, Central Calcutta, which established that such provisions are debts owed. Consequently, the appeal was accepted, the High Court's judgment was set aside, and the question was answered in favor of the assessee-appellant.