High Court Of Madras
Commissioner Of Wealth Tax vs. V.R. Annapoorani Veerappan
Sections WT 2(M), WT 3
Asst. Year 1978-79
R. Jayasimha Babu & A.K. Rajan, JJ.
T.C. Nos. 1014 to 1017 of 1990
15th October, 2001
Mrs. Chitra Venkataraman, for the Revenue : Gangadharan, for the Assessee
R. Jaasimha Babu J. :
The decision which the Tribunal had relied on to hold in favour of the assessee had itself relied on an earlier decision of the same Tribunal for the earlier assessment year. That decision was the subject-matter of a reference and was considered by this Court in CIT vs. Annapurani Veerappan (1992) 193 ITR 426 (Mad). In that case, this Court held that debts which the assessee claimed to have become irrecoverable, were not to be treated as bad debts as has been held by the Tribunal. Though that case arose under the IT Act, 1961, and the present one is under the WT Act, 1957, the factual matrix is the same. In the circumstances, the law declared by this Court in the case referred to above, to which the assessee was a party, would apply to the asst. yr. 1978-79 in respect of the wealth- tax assessment as well.
2. The question referred as to “whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 21,505 due from one Chockalingam Chettiar should be excluded from the wealth of the assessee ?” therefore, is answered in favour of the Revenue and against the assessee.
[Citation : 257 ITR 735]