1971 INSC 0454
                                           Assam Oil Company Limited

                                                           Vs

                               Commissioner of Wealth-Tax, (Central Calcutta)

                          Civil Appeals Nos. 1404-1405 of 1970 and 1471 of 1971

                                           (K.S. Hegde, A.N. Grover JJ)

                                                      23.09.1971

                                                     JUDGMENT

HEGDE, J. -

1. The questions of law referred to the High Court under Section 27 of the Wealth Tax Act, 1957 in
all these appeals are more or less identical. It is sufficient if we refer to one of those questions. It
read :

                  "Whether on the facts and in the circumstances of the case the provision of Rs.
                  2,99,21,841 made by the assessee for its tax liability less the amount of the last
                  instalment of advance tax constituted a debtowed by the assessee within the meaning
                  of clause (m) of Section 2 of the Wealth Tax Act on the relevant valuation date ?"

2. The High Court has answered these questions in favour of the revenue but in view of the decision
of this Court in Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Wealth Tax (Central)
Calcutta, (59 ITR 767 : AIR 1966 SC 1370) the conclusion reached by the High Court cannot be
accepted as correct.

3. In the result Civil Appeal No. 1404 of 1970 and Civil Appeal No. 1471 of 1971 are allowed, the
answer given by the High Court to the questions referred to it are discharged and in its place we
answer those questions in favour of the assessee. There will be no order as to costs.

4. Now coming to Civil Appeal No. 1405 of 1970, we revoke the certificate granted by the High
Court as the same is not supported by any reason. Hence, that appeal is not maintainable. It is
dismissed without any order as to costs.

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