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2018 (1) TMI 17 - AT - Wealth-taxDisallowance of claim for deduction of debts incurred in relation to the taxable assets from gross wealth - Held that:- Admittedly, the assessee is engaged in hire purchase and leasing the vehicles. “Proportionate basis” for determination of the debt can be adopted if multiple assets were brought under wealth tax. In the computation of wealth, the assessee has declared value of own vehicles as well as value of leased vehicles and no other assets exist or compounded with any other assets so as to find difficult to determine the debt on proportionate basis. Thus, adoption of proportionate basis for determination of the debts does not arise in this case as rightly held by the ld. CIT(A). We find no fault if the assessee has borrowed the funds for acquiring capital assets, which is exactly, nothing but leased vehicles. However, the assessee has not brought on record and cogent evidences as to whether the borrowed funds were utilized for leased vehicles. From the above, the stated fact is that the assessee has, initially, acquired leased vehicles and thereafter borrowed funds from Banks and utilized. To accept the above contention of the assessee, the assessee is required to file complete details of acquisition of leased vehicles, utilization of borrowed funds for both the assessment years before the Assessing Officer and accordingly, the Assessing Officer is directed to verify the details as may be filed and decide the issue afresh in accordance with law after allowing sufficient opportunity of being heard to the assessee.
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