R.K. DEO vs COMMISSIONER OF WEALTH-TAX, ORISSA.

The Supreme Court upheld the High Court's decision that the amount of Rs. 6,69,766 was not admissible as a deduction under the Wealth Tax Act, 1957 for the assessment years 1962-63 to 1965-66. It established that an income tax liability qualifies as a debt under Section 2(m) of the Wealth Tax Act, but the appellant could only claim a deduction if the revenue did not prove it was outstanding for more than 12 months on the valuation date. The Court concluded that the appellant's tax liability remained unpaid for over 12 months, thus disallowing the deduction.