TMI Blog2013 (8) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. C.O. NO. 24/JP/2012 : 1. That on the facts, in totality of the circumstances and in law, the appeal filed by the revenue is not maintained and deserves to be dismissed in limine. 2. The Ld. CWT (A) erred in directing the A.O. to calculate the net wealth of the assessee at 2% of ₹ 25,80,64,752/- which is outstanding amount of the creditors, and erred in holding that the advance received against plots/lands etc. is not deductible as debt u/s 2(m) of Wealth Tax Act without appreciating the fact that the amount against advance against booking and amount received against JDA charges etc. was much more than the stock and the same was utilized in purchase of gold in order to hedge the escalation in the price o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of wealth filed for both the years, the assessee disclosed assets on the valuation date in respect of both the years as under :- A.Y. 2007-08 : Motor Car ₹ 80,94,455/- Jewellery/bullion ₹ 14,86,75,900/- A.Y. 2008-09 : Motor car ₹ 2,21,69,310/- Jewellery ₹ 19,18,78,125/- The assessee claimed deduction under section 2(m) of the Act for debts incurred in relation to the aforesaid assets available as on valuation date for each of the aforesaid years as the amounts that wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the impugned order contended that there is no justification in directing the assessment at 2% of the outstanding creditors of ₹ 25,80,64,752/- in assessment year 2007-08 and 2% of creditors of ₹ 65,28,47,468/- in assessment year 2008-09 as assessee s debt on the valuation date as such cannot be said to have incurred in relation to the assets held by him on that date. 5. On the other hand, assessee s counsel through written submissions as well as orally contends that the debt incurred by the appellant is not in dispute. The amount that are received are not taken as assessee s income. The same are liabilities outstanding in the Balance Sheet which reflect true and correct affairs and are part of record. It is also admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not only mean by loan taken by the assessee for the purpose of acquiring a particular taxable asset but it includes all type of liability owed or due; anything (as money, goods, or service) which one person is under obligation to pay or render to another and that was utilized in acquiring the taxable asset. Accordingly, the advance received by the assessee from customers is liability for the assessee and if this liability was utilized in acquiring the taxable asset, the same constitute deductible debts for the purpose of calculating the net wealth of the assessee which is subsequently payable in goods subsequently. 6. Since the amount of debt is repayable in cash or kind, therefore, it is a debt and since it was utilized in purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which was in disregard of the fact that the debt in entirety is not the income of the years under consideration. 7. We have heard parties with reference to material on record and case laws brought to our notice. The Ld. CWT (A) in appeal has returned a finding of fact that the advances received against plot booking and JDA charges have been utilized for acquisition of gold and car. This finding of fact has neither been assailed by the revenue nor shown to be perverse on facts. The same, therefore, attains finality. We also find and the record reveals that the amount of advances raised by the assessee against plot booking and JDA charges were repayable in cash or kind on the relevant valuation date and is a debt incurred by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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