TMI Blog2009 (1) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant. Mr.P.S.Sahadevan with Mrs.Anuradha More for the respondent. JUDGMENT The two questions of law which have been referred for our opinion under Section 27(1) of the Wealth Tax Act are as follows :- 1. Whether on the facts and in the circumstances of the case the deduction on account of debt owed for the purpose of determining the net wealth as claimed by the assessee should be reduced by the investment made in Capital investment Bonds ?" 2. Whether on the facts and in the circumstances of the case the Tribunal was justified in law in holding that although the debt owed was incurred in relation to a property which was chargeable to Wealth-tax, the full amount of the debt could not be allowed as a full deduction bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... He observed that the value of the property was exempted u/Sec.5(1A). He also referred to the investment made by the assessee in Capital Investment Bonds which were exempted from wealth-tax. (c) In the appeal to the CWT(A), the WTO's action of allowing only a partial deduction for the debt owed was challenged. The CWT(A) accepted the contentions of the applicants and directed allowance of the full amount of the debt owed as claimed. (d) The revenue appealed to the Tribunal and the Tribunal partly allowed the appeal and directed that the debt owed as claimed should be allowed after reducing therefrom the amount invested in Capital Investment Bonds. The applicants thereafter made an application for reference and in such circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in appeal, revision or other proceeding as not being payable by him ; or (b) which, although not claimed by the assessee as not being payable by him, is nevertheless outstanding for a period of more than twelve months on the valuation date ;] [ Explanation : A building or part thereof referred to in clause (iii), clause (iiia) or clause (iiib) of section 27 of the Income-tax Act shall be includible in the net wealth of the person who is deemed under the said clause to be the owner of that building or part thereof ;] 5. Counsel for the applicant relied upon a judgment of this Court in the case of Bishweshwarilal Chirawala V/s. Commissioner of Wealth-tax reported in 187 ITR 118. The facts of the said case were however different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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