TMI Blog1986 (9) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of credit balance in the account of Smt. Swaran Kumari Sharma. The WTO found credit balance in the books of the assessee on account of said Smt. Swaran Kumari Sharma. These credits are being brought forward from the asst. yrs. 1970-71 onwards. It appears, for the asst. yr. 1970-71 these credits were accepted by the ITO as genuine and no addition was made on this account. For the six assessment years under appeal, under the WT Act, it appears, the WTO made certain enquiries and noticed make interest in the said account was being accumulated and not paid to the creditors. The IIT, was, therefore, deputed for making necessary enquiries. The creditor denied having made any advance to the assessee. The WTO, therefore, treated the same as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently recorded the statement of Smt. Sharma, when she resiled from the earlier statement made by her. According to him, this statement has not been considered by the WTO at all while making the additions. He, therefore, urged that on either count the additions are liable to be deleted. 5. Sh. I.C. Verma and SH. B.L. Lariya, Ld. departmental representatives, conceded that the second statement of the creditor was recorded by the ITO which does not find place in the orders of the WTO or the AAC. It was also known whether proceedings initiated under s. 147(a) have since been approved by the Board and the fate thereof. 6. Since the a statement containing the denial by the creditor has not been confronted to the assessee, nor the WT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -84, additions made were Rs. 94,460, Rs. 1,05,014 Rs. 90,014 and Rs. 1,55,014 respectively. These additions were challenged in appeals before the AAC, who has upheld the same. 8. It has been submitted before us that the machinery in question was old and outdated having only scrap value and, if, sold in the open market, will bring nominal value. Further the machinery was got valued at a notional higher value simply to avail of bank overdraft facilities when the value on the valuation date was nominal. Without prejudice to the above contentions, it was further submitted that the valuation of all assets should be considered as a whole for Wealth-tax purposes. Further in the balance-sheet as on 31st March, 1978 on the asset side, value of ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that this issue should also go back to his file for fresh determination, after taking into consideration the submissions of the assessee in relation to bardana appearing on the asset side of the balance-sheet. He will give opportunity to both the parties before determining the issue. He will also redetermine the value of the machinery. 11. The last ground of appeals which is common for all the assessment years is that the AAC has erred in not allowing deduction under s. 5(1)(iv) by treating the factory building consisting of various blocks instead of taking all the blocks as a single unit. The WTO allowed the deduction under s. 5(i)(iv) in respect of value of land and building of the factory, considering the factory building as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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