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TMI Blog1982 (2) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... the said house jointly with one Smt. Meena on25-5-1972. Cost price of the assessee's one-half share in the said asset came to Rs. 1,09,140. That sum had been borrowed by the assessee from a certain firm in which he was a partner. In the assessment completed by the WTO, Rs. 1,09,140, i.e., the declared estimated value of the assessee's one-half share, was accepted as correct value. Benefit of exemption under section 5(1)(iv) of the Wealth-tax Act, 1957 ("the Act"), was given to the assessee to the extent of Rs. 1 lakh. That left balance sum of Rs. 9,140 as value of taxable portion of the asset. In respect of the amount of Rs. 1,09,140, being the debt owed by the assessee to the partnership firm as aforesaid, the assessee claimed deduction u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be deductible under section 2(m), even though the exemption available under section 5(1)(iv) was up to a ceiling of Rs. 1 lakh. The debt owed by the assessee in that case was Rs. 36,000 for the assessment year 1972-73. 6. As against this, the learned counsel for the assessee relied on the decision dated 28-7-1980 of the Madras Bench 'A' of the Tribunal in the case of one C. R. Rajendran. In the said decision the Bench of the Tribunal had noticed the aforesaid Madras High Court ruling and still held that deduction of debt owed was permissible even though borrowed money stood utilised in relation to assets partly exempt from tax. For taking such view, the Tribunal relied on Board's Circular No. 1070 dated28-6-1977.Para3 whereof reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard's Circular merely purported to give a concession to the assessees by way of administrative policy and that, therefore, as held by the Madras Bench of the Tribunal as aforesaid, the Board's circular should be followed. 8. On close reading of para 3 of the circular as extracted above, we are inclined to agree with the department that the said circular involved interpretation of legal provisions on the basis of rule of harmonious construction and rule of supplying a meaning in the absence of requisite indications. Further basing ourselves on Sirpur Paper Mills, we hold that such function is the exclusive domain of the quasi-judicial authorities concerned and the Board's view in that connection, whether beneficial to the assessee or not, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are secured on, or which have been incurred in relation to 'any asset in respect of which wealth-tax is not payable under this Act;'" AFTER AMENDMENT "(ii) debts which are secured on, or which have been incurred in relation to any property in respect of which wealth-tax is not chargeable under this Act;" 10. Contrast of the above two versions of sub-clause (ii) shows that Parliament had a particular purpose when introducing the amendment by way of substitution. We proceed to explain that purpose. The term "asset" has been defined in section 2(e). Para 1 thereof contains the definition in relation to the assessment year commencing on the first day of April, 1979 or any earlier assessment year and excludes five items of property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o CIT v. Godavari Devi Saraf [1978] 113 ITR 589 (Bom.), cited by the learned departmental representative, in support of the proposition that the Wealth-tax Act being an all India enactment, where there exists a solitary ruling of the High Court, other High Courts as also the Tribunal should feel bound by such ruling. The ratio in Smt. Godavari Devi was laid down in the peculiar context of the constitutional vires of a certain provision i.e., section 140A(3), and not on the aspect of interpretation as such of provision of the Income-tax Act. 15. In the result, the AAC's order is confirmed. 16. So far as the assessment years 1974-75, 1975-76 and 1976-77 are concerned, we on the aforesaid reasonings again confirm the AAC's order. 17. Tho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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