THE COMMISSIONER OF WEALTH TAX GUJARAT, AHMEDABAD vs KANTILAL MANILAL ETC. ETC.

The Supreme Court held that to invoke the bar under Section 2(m)(iii)(a) of the Wealth Tax Act, it must be established that an amount of tax is outstanding on the valuation date and that the assessee claims it as not payable. The Court clarified that an amount is considered outstanding if it is payable and remains unpaid, emphasizing the stages of tax liability from its inception to the issuance of a notice of demand. The appeal by the Revenue was dismissed, affirming the High Court's decision in favor of the assessee regarding the admissibility of the deduction claims.