Home Case Index All Cases Wealth-tax Wealth-tax + HC Wealth-tax - 2013 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 50 - HC - Wealth-taxDeduction under 2(m) of the Wealth Tax Act - The assessee company borrowed loans from the directors for the purpose of discharging bank loans and releasing mortgage over the land - Held that:- On going through the provision of the definition clause of "net wealth" above - We are of the view that the debt incurred "in relation to the asset" should enjoy a wide meaning to cover all debts incurred for acquiring, securing and retaining the property free of charge. If the assesee had not borrowed funds from the directors and released the mortgage over the property the bank was absolutely free to attach and sell the property in exercise of it's mortgage right and recover the arrears which was more than double the actual amount paid under one time settlement to release the charge. So much so, the debt incurred directly for releasing the mortgage over the property can safely be treated as debt incurred in relation to the property. We, therefore allowed the deduction and uphold the finding of the Tribunal in this regard - The Revenue's appeal is dismised .
|