COMMISSIONER OF WEALTH TAX, MYSORE vs HER HIGHNESS VIJAYABA, DOWGER MAHARANI SAHEB OF BHAVNAGARPA

The Supreme Court held that the sum of Rs. 19 lakhs owed by the respondent to her younger son constituted a debt under Section 2(m) of the Wealth Tax Act, 1957, and was deductible from her net wealth. The Court found that the letter dated 14-5-1953 created a binding family arrangement, which was enforceable and not void for lack of consideration under Section 25 of the Contract Act. The appeal was dismissed, affirming the High Court's decision that the debt was valid and deductible.