Commissioner Of Income Tax, Calcutta
v.
Standard Vacuum Oil Company
(Supreme Court Of India)
No | 29-03-1972
SIKRI, C.J.
1. M/S. Standard Vacuum Oil Co. Ltd., the assessee, claimed to deduct Rs. 5, 63, 670 payable as wealth-tax for the assessment year 1959-60, from its assessable income for that year. The Income-tax Officer disallowed the claim. The Appellate Assistant Commissioner upheld the order of the Income-tax Officer. The Appellate Tribunal, however, came to the conclusion that the expenditure incurred was incidental to business and allowed the claim of the assessee, observing that the wealth-tax payments should be allowed in the years when they are actually paid At the instance of the Commissioner of Income-tax, the following question was referred to the High Court
" Whether, on the facts and in the circumstances of the case, having regard to the provisions of the Wealth-tax Act of 1957, the allowance of wealth-tax liability was correct"
2. The High Court answered the question in favour of the assessee. This judgment of the High Court is dated November 24, 1964. The revenue obtained certificate of fitness from the High Court and appealed to us
3. Following our decision in Indian Aluminium Co. Ltd. v. Commissioner of Income-tax, judgment delivered just now, the appeal is dismissed. Parties will bear their own costs throughout
4. Appeal dismissed.
1. M/S. Standard Vacuum Oil Co. Ltd., the assessee, claimed to deduct Rs. 5, 63, 670 payable as wealth-tax for the assessment year 1959-60, from its assessable income for that year. The Income-tax Officer disallowed the claim. The Appellate Assistant Commissioner upheld the order of the Income-tax Officer. The Appellate Tribunal, however, came to the conclusion that the expenditure incurred was incidental to business and allowed the claim of the assessee, observing that the wealth-tax payments should be allowed in the years when they are actually paid At the instance of the Commissioner of Income-tax, the following question was referred to the High Court
" Whether, on the facts and in the circumstances of the case, having regard to the provisions of the Wealth-tax Act of 1957, the allowance of wealth-tax liability was correct"
2. The High Court answered the question in favour of the assessee. This judgment of the High Court is dated November 24, 1964. The revenue obtained certificate of fitness from the High Court and appealed to us
3. Following our decision in Indian Aluminium Co. Ltd. v. Commissioner of Income-tax, judgment delivered just now, the appeal is dismissed. Parties will bear their own costs throughout
4. Appeal dismissed.
Advocates List
For
For Petitioner
- Shekhar Naphade
- Mahesh Agrawal
- Tarun Dua
For Respondent
- S. Vani
- B. Sunita Rao
- Sushil Kumar Pathak
Bench List
HON'BLE JUSTICE S. M. SIKRI (CJI)
HON'BLE JUSTICE A. N. RAY
HON'BLE JUSTICE D. G. PALEKAR
HON'BLE JUSTICE M. H. BEG
HON'BLE JUSTICE A. N. GROVER
Eq Citation
[1972] 86 ITR 1
LQ/SC/1972/205
HeadNote
A) Wealth-tax — Wealth-tax liability — Deductibility of — Held, in view of decision in Indian Aluminium Co Ltd case (2005) 1 SCC 683
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