TMI Blog2013 (9) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancing at certain particular percentage cannot be upheld by the Court - When it was purely a question of law as to the method of valuation to be adopted, not valuation as such for consideration – Relying upon CWT Vs. Sharvan Kumar Swarup and Sons [1994 (9) TMI 2 - SUPREME Court ] - there was no hesitation in rejecting the assessee's plea for a remand – Revenue’s plea was accepted and the matter was restored to the files of the AO to adopt Schedule III to Wealth Tax Act in valuing the property - To that extent the order of the ITAT was set aside. Commissioner of Wealth-Tax, Gujarat Vs. Vimlaben Vadilal Mehta [1983 (10) TMI 3 - SUPREME Court] - The tax liability under the Income Tax Act, Gift Tax Act and the Wealth Tax Act were debt owe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal was right in directing the assessing officer to value the properties at Rs.2,500/- per cent for the assessment years 1995-96 to 1998-99 ? and 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that wealth tax payable by the assessee is to be treated as debt and the same has to be excluded from the wealth for the purpose of wealth tax assessment ? " 2. As far as the second issue is concerned, we find that the Income Tax Appellate Tribunal followed the decision in the assessee's own case for the assessment year 1984-85 to 1987-88. The claim of the assessee for the deduction of wealth tax liability from the net wealth of the assessee as computed in terms of Section 40 of the Wealth Tax Act (here ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no tax liability, there was no debt owed by the assessee on the valuation date. 5. We have perused the provisions of Section 2(m) of the Wealth Tax Act, which was amended with effect from 01.04.1993. Thus, a reading of the provisions of the Act as it stood prior to 01.04.1993 and with effect from 01.04.1993 read as under:- " Section 2(m) of the Wealth Tax Act prior to 01.04.1993: "net wealth" means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clause, be limited to the value of the said asset which is not includible in the net wealth under sub-section (1A) of section 5. " " Section 2(m) of the Wealth Tax Act with effect from 01.04.1993: "2(m) "net wealth" means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets, wherever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee (on the valuation date which have been incurred in relation to the said assets;) " The amendment made shows that the substantive part of the expression of "the debts owed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the property at Kodaikanal is to be valued as per Schedule III to Wealth Tax Act, the same yardstick ought to have been extended while considering the valuation of the Kochadai property. 8. Learned counsel appearing for the assessee, however, submitted that the said issue was not before the Income Tax Appellate Tribunal and hence, does not arise out of the order. He further pointed out that the relevance to Schedule III of Wealth Tax Act was not there even before the Assessing Officer, consequently, the same may not be considered by this Court at this stage. 9. We do not accept with the said line of reasoning of the learned counsel appearing for the assessee. It is seen from the order of the Commissioner of Income Tax (Appeals) that bas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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