N.K.Assumi (Advocate) 19 March 2009
See the case of C.W.T. Vs Ahmad Tea Co., AIR 1967 Assam 63 at page 65. The Gauhati High Court observed that: As the liability to pay income tax is there, and the assessee has set apart certain amount thought to be necessary for discharging the tax liability, the same has been ascertained and it can not be said that the amount is not a debt.
Simply put, debt means, .... a debt is a sum of money which is now payable or will become payable in the future by reason of a present obligations.
G. ARAVINTHAN (Legal Consultant / Solicitor) 20 March 2009
Whether tax due to Sales tax commissioner or income tax commissioner is a debt?