COMMlSSTONER OF WEALTH TAX, BIHAR, PATNA vs MAHARAJA KUMAR KAMAL SINGH

The Supreme Court held that in computing net wealth under Section 2(m) of the Wealth Tax Act, 1957, the Wealth Tax Officer must first estimate the value of assets as per Section 7(1) and then deduct debts owed by the assessee, excluding those specified in Section 2(m). The Court affirmed that the unpaid agricultural income-tax liability is a deductible debt, and since the assessee's compensation was rendered nil due to these arrears, the value of the asset was determined to be nil. The appeal was dismissed, upholding the High Court's decision.