TMI Blog1982 (11) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... red to as " the Act "), made by the Income-tax Appellate Tribunal, Gauhati Bench, at the instance of the CWT arising out of the order of the Appellate Tribunal dated October 23, 1973, passed in Wealth-tax Appeals Nos. 65 (Gau) to 72 (Gau) of 1971-72 relating to the assessment years 1960-61 to 1967-68. The question referred reads : "Whether, on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uting the interest of the assessee in the two firms the WTO considered the claim for deduction of agricultural income-tax liabilities in respect of the tea garden which is an asset of M/s. Jorharmal Murlidhar Co. This reason given by the WTO was that agricultural income-tax is a debt incurred in relation to agricultural assets in respect of which wealth-tax is not chargeable. He has further held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired 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 other than (ii) debts which are secured on, or which have been incurred in relation to, any asset in respect of which wealth-tax is not payable under this Act." Clause (e) of section 2 of the Act defines " assets " as follows: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alth-tax is not payable also cannot be deducted. Agricultural income-tax is, undoubtedly, debt which is incurred in relation to assets, such as agricultural land and growing crops, which are not included in the definition of assets as defined in cl. (e) of s. 2. As agricultural land and growing crops are not included in net wealth as defined in the W.T. Act, wealth-tax has not to be paid on them. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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