Sikri, C.J.—M/s. Standard Vacuum Oil Co. Ltd., the assessee, claimed to deduct Rs. 7,63,670 payable as wealth-tax for the assessment year 1958-60, 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 allowed the claim of the assessee, observing that the wealth-tax payments should be allowed in the years when they are actually paid.
2. 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 ?"
3. The High Court answered the question in favour of the assessee. This judgment of the High Court is dated November 14, 1964. The revenue obtained certificate of fitness from the High Court and appealed to us.
4. Following our decision in Indian Aluminium Co. Ltd. v. Commissioner of Income-tax, Civil Appeals Nos. 1694 & 1730 of 1968 judgment dated march 19, 1973, since reported in (1973) 84 I.T.R. 734 (S.C.), judgment delivered just now, the appeal is dismissed. Parties will bear their own costs throughout.
