1993 PLP 891 (PTD)
P. SATHRUGHAN PILLAI Versus COMMISSIONER OF WEALTH TAX
| Citation | 1993 PLP 891 (PTD) |
| Forum / Court | 199 I T R 7 |
| Bench Members | S. Ranganathan, V. Ramaswami and Yogeshwar Dayal, JJ |
| Parties | P. SATHRUGHAN PILLAI Versus COMMISSIONER OF WEALTH TAX |
| Primary Law | Wealth tax |
Q1: What are the key laws and sections cited in 1993 PLP 891 (PTD)?
This judgment primarily cites: Wealth tax as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 1993 PLP 891 (PTD)?
The case was heard and decided by the 199 I T R 7 bench comprising: S. Ranganathan, V. Ramaswami and Yogeshwar Dayal, JJ.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 1993 PLP 891 (PTD) (P. SATHRUGHAN PILLAI Versus COMMISSIONER OF WEALTH TAX). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Representation
- T.S. Krishnamoorthy Iyer, Senior Advocate (V.B. Saharya, Advocate with him) for Appellants.
- J. Ramamurthy, Senior Advocate (Ranbir Chandra and P. Parameswaran, Advocates with him) for Respondent.
Headnotes / Summary
(Appeals by special leave against the judgments and orders, dated January 15, 1976, of the Kerala High Court in Income-tax References Nos. 97, 98 and 105 of 1974).
Net wealth
Debts"
Liability for gratuity payable under statute
Not deductible
Indian Wealth Tax Act, 1957, S.2(m). The liability for payment of gratuity to employees in terms of the Kerala Industrial Employees (Payment of Gratuity) Act, 1970, is not deductible as a "debt owing" on the valuation date in computing the net wealth for purposes of wealth-tax. There is no reason to doubt the correctness of the decision of the Supreme Court in Standard Mills Co. Ltd. v. CWT (1967) 63 TTR 470 (SC) which has held the field for about 25 years and has also been reaffirmed in subsequent decisions of the Supreme Court. Standard Mills Co. Ltd. v. CWT (1967) 63 ITR 470 (SC) and Bombay Dyeing and Manufacturing Co. Ltd. v. CWT (1974) 93 ITR 603 (SC) applied. Decision of the Kerala High Court affirmed.
Judgment & Decree
Net wealth
Debts"
Liability for gratuity payable under statute
Not deductible
Indian Wealth Tax Act, 1957, S.2(m). The liability for payment of gratuity to employees in terms of the Kerala Industrial Employees (Payment of Gratuity) Act, 1970, is not deductible as a "debt owing" on the valuation date in computing the net wealth for purposes of wealth-tax. There is no reason to doubt the correctness of the decision of the Supreme Court in Standard Mills Co. Ltd. v. CWT (1967) 63 TTR 470 (SC) which has held the field for about 25 years and has also been reaffirmed in subsequent decisions of the Supreme Court. Standard Mills Co. Ltd. v. CWT (1967) 63 ITR 470 (SC) and Bombay Dyeing and Manufacturing Co. Ltd. v. CWT (1974) 93 ITR 603 (SC) applied. Decision of the Kerala High Court affirmed. T.S. Krishnamoorthy Iyer, Senior Advocate (V.B. Saharya, Advocate with him) for Appellants. J. Ramamurthy, Senior Advocate (Ranbir Chandra and P. Parameswaran, Advocates with him) for Respondent. The question raised in these appeals which arc: under the Wealth Tax Act, 1957, is whether the liability for payment of gratuity to employees in terms of the Kerala Industrial Employees (Payment of Gratuity) Act, 1970, is deductible as a debt owing on the valuation date. The High Court has applied the decision of this Court in the case of Standard Mills Co. Ltd. v. CWT (1967) 63 ITR 470 SC, the principle of which was reiterated in Bombay Dyeing and Manufacturing Co. Ltd. v. CWT (1974) 93 ITR 603 (SC). Learned counsel for the appellants seeks to persuade us to reconsider the decision in the case of Standard Mills Co. Ltd. (1967) 63 ITR 470 (SC). Apart from the fact that we see no reasons to doubt the correctness of this decision which has held the field for about 25 years and has also been reaffirmed in the subsequent decisions of this Court, we are also informed that the stakes involved in the present appeals are only a few hundred rupees each. In these circumstances, we do not think that there is any justification to think of reconsidering the said decision. The appeals, therefore, fail and stand dismissed. There will be no order as to costs. M.BA./2254/T Appeals dismissed.