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TMI Blog2009 (1) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... tal 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 because of the investment made by the assessee in an asset exempt from Wealth-tax?" 2. The facts on the background of which the two questions of law arise are as follows:- (a) The three applicants are sisters. Alongwith their mother each of them owned 1/4th share in a building named as 'Sett Minar, situated at Dr.Gopalrao Deshmukh Marg, Bombay. In 1982, the property was given on leave and licence basis by the owners to the Indo Suez Bank. Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 aforesaid two questions have been referred to this Court for consideration. 3. We find that all through-out, there has been no dispute that the immovable property in question has been treated as property in respect of which wealth tax was chargeable. In fact, the applicants had valued this immovable property under Rule 1BB of the Wealth Tax Rules and this valuation was accepted. 4. Under Section 2(m) of the Wealth Tax Act the term "net we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. In that case a loan was obtained by the assessee against the pledge of gold bonds which were not chargeable to wealth tax. It was held that the loan was not deductible in computing net wealth. This finding was based on the footing that the debt was a specified non deductible debt covered by section 2(m) (ii). Advocate for the assessee also relied upon the judgment of the Madhya Pradesh High Court in the case of C.W.T. M.P-I V/s. Narayandas J.Hemani report ..... X X X X Extracts X X X X X X X X Extracts X X X X
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