assessee claimed that in computing his net wealth for assessment year under appeal, he was entitled to deduction of income-tax liabilities relating to asst. yrs. 1974-75 and 1975-76. WTO disallowed claim on ground that they were more than one year old. Possibly, he was counting period of one year with reference to assessment years themselves. assessee appealed to AAC. It was submitted before latter that return for asst. yr. 1974-75 was filed on 27th March, 1976 and that for asst. yr. 1975-76 was filed in July, 1975. It was contended before him that both above dates fell within one year from 31st March, 1976 which was valuation date for year under appeal. Being satisfied with this claim, AAC directed WTO to allow assessee's claim. department is now in appeal before us. ld. Departmental Representative submitted before us that assessee was entitled to deduction of above amounts as liabilities for tax arose at close of accounting period i.e., on 31st March, 1974 for asst. yr. 1974-75 and on 31st March, 1975 for asst. yr. 1975-76 and both these dates were beyond period of one these dates were beyond period of one year from 31st March, 1976 being valuation date for year under appeal. On behalf of assessee, order of AAC was supported. WE have considered submissions placed before us. We are of opinion that matter has not been dealt with in accordance with law by lower authorities. Sec. 2, cl. (m) defines net wealth as meaning amount by which aggregate value of all assets is in excess of aggregate value of all debts owed by asses on valuation date. However, some of debts are not to be allowed in computation of net wealth. One of them as laid down in cl. (iii) of above sub-section, is tax which is in consequence of any order passed under any of Taxing Statutes, which is outstanding for period of more than 12 months on valuation date. For determining tax, it is necessary that it should arise in consequence of order and secondly such tax should be outstanding for period of more than 12 months on valuation date. In present case, assessee has claimed income-tax liabilities due from him for asst. yrs. 1974-75 and 1975-76. On valuation date, no orders were passed determining these liabilities. question of their disallowance under cl. (iii) of s. 2(m) of WT Act, therefore, does not arise. They are not one of exceptions of debts owed by assessee. They have, therefore, been rightly directed to be allowed by AAC in computation of assessee's wealth. In result, appeal is dismissed. *** WEALTH-TAX OFFICER v. MEWA LAL JAISWAL