COMMISSIONER OF WEALTH TAX ORISSA, BHUBANESHWAR. vs VYSYARAJU BADREENARAYANA MOORTHY RAJU, BERHAMPUR (GANJAM)-

The Supreme Court held that under Section 2(m) and Section 7 of the Wealth Tax Act, 1957, interest due on an accrual basis, even if not realized, must be included in the net wealth of the assessee, regardless of whether the accounts are maintained on a cash basis. The Court clarified that the definition of 'net wealth' encompasses all assets, and the method of accounting does not affect the inclusion of rights accruing as assets. The previous decisions in Commissioner of Wealth-tax Bihar and Orissa v. Vysyaraju Badreenarayana Moorthy Raju and A.T. Mirji v. Commissioner of Wealth-Tax were overruled, affirming the principle that all rights constituting assets must be accounted for under the Wealth Tax Act.