9911796707
TMI Blog1983 (12) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ,304 for the asst. yr. 1974-75 and Rs. 7,00,233 for the asst. yr. 1975-76. The WTO, however, held that these debts were incurred in relation to and for the purpose of acquisition of shares the value of which amounted to Rs. 10,54,017 for the asst. yr. 1973-74, Rs. 10,22,919 for the asst. yr. 1974-75 and Rs. 8,33,658 for the asst. yr. 1975-76. He, therefore, disallowed the claim of deduction of the debts in the same proportion as the value of shares exempt from tax bore to the total value of the shares. The result was that out of the claim of debts which according to the assessee were to be deducted in working out the assessee's net wealth, the WTO disallowed Rs. 90,976 for the asst. yr. 1973-74, Rs. 97,266 for the asst. yr. 1974-75 and Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar that if there was a debt of Rs. 1 lac secured or incurred in relation to a house property, of the value of Rs. 1,50,000 which was entitled to exemption up to Rs. 1 lac, the debt will have to be allowed to the extent of Rs. 50,000 being the value of the house property which was otherwise includible in the net wealth. Relying on the authority of the Hon'ble Supreme Court in the cases of Navnital C. Javeri vs. K. K. Sen (1965) 56 ITR 198 (SC), Ellerman Lines Ltd. vs. CIT 1972 CTR (SC) 71 : (1971) 82 ITR 913 (SC) and K. P. Varghese vs. ITO (1981) 24 CTR (SC) 358 : (1981) 131 ITR 597 (SC), Shri Jain contended before us that the Board's circulars, particularly those beneficial to the assessee, were binding on the Revenue Authorities. On this b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in relation to and for the purpose of acquisition of shares, the value of which to the extent of Rs. 1,50,000 was exempt under s. 5(1) of the WTO Act, was not challenged before the AAC of WT, this challenge which involves investigation of facts cannot be entertained at this stage. There is however, merit in the submission of the assessee's learned counsel Shri Jain that in view of the rulings of the Hon'ble Supreme Court in the cases cited by him, the Board's circulars, particularly where they are beneficial to the assessee are binding on the Revenue Authorities. Viewed in this context, it cannot be disputed that the Board by instruction No. 1070, dt. 28th June, 1977 directed that where deduction was claimed in respect of debts which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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