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Issues:
1. Deduction of Rs. 72,000 in computing net maintainable rent under rule 1BB of the Wealth tax Rules. 2. Assessment of Rs. 5,13,566 and Rs. 5,88,138 to wealth-tax under sub-section (3) of section 40 of the Finance Act, 1983 for the assessment years 1984-85 and 1985-86. Analysis: 1. The first issue revolves around the deduction of Rs. 72,000 in computing the net maintainable rent under rule 1BB of the Wealth tax Rules. The dispute arose when the Assessing Officer added this amount while determining the value of a house property owned by the assessee. The Commissioner of Wealth-tax (Appeals) directed the deduction as claimed by the assessee, citing similar relief granted in an income-tax case. The Tribunal upheld this direction, emphasizing the genuine agreements between the assessee and lessees. The Tribunal found that the amount of Rs. 72,000 was deductible while determining the net maintainable rent. The High Court concurred with the Tribunal's findings, holding that the Wealth-tax Officer was not justified in adding the sum of Rs. 72,000. 2. The second issue pertains to the assessment of Rs. 5,13,566 and Rs. 5,88,138 to wealth-tax under sub-section (3) of section 40 of the Finance Act, 1983 for the assessment years 1984-85 and 1985-86. The Assessing Officer added these amounts to the net wealth of the assessee, considering unpaid Corporation taxes as liabilities utilized for acquiring assets. However, the Commissioner of Wealthtax (Appeals) deleted the addition, which was challenged by the Revenue before the Appellate Tribunal. The Tribunal ruled that undischarged liabilities towards municipal taxes could not be treated as a debt secured on assets taxable under the relevant clause. It held that the assets mentioned by the Assessing Officer were not covered by the specified clauses and, therefore, the addition was unjustified. The High Court concurred with the Tribunal's reasoning, answering the second question in favor of the assessee. In conclusion, the High Court upheld the Tribunal's decisions on both issues, granting relief to the assessee regarding the deduction in net maintainable rent and the assessment of unpaid Corporation taxes to wealth-tax.
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