2005 (9) TMI 58

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..... h the wealth-tax is chargeable as per sub-section (3) of the said section 40 of the Finance Act, 1983?" – held that assessee cannot be denied the benefit for the past years. Accordingly the Tribunal opined that the said deposit of Rs. 12 lakhs should be treated as a liability in the assessment year in question against the assets of the assessee and the Assessing Officer should allow deduction of the liability of Rs. 12 lakhs from the net wealth – no infirmity in tribunal’s order
Judge(s) : S. K. KULSHRESTHA., ASHOK KUMAR TIWARI. JUDGMENT The judgment of the court was delivered by S.K. Kulshreshtha J.- The Commissioner of Wealth-tax, Indore has filed this appeal under section 27A of the Wealth-tax Act, 1957, which has been admitted on .....

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..... eduction of the same was claimed while determining the net wealth. The Assessing Officer rejected the claim and treated the same as deposits for the right to use the premises on the ground that the liability is allowable where the value of the assets represent any loan or debt, the assessee was not entitled to any deduction. The order of the Assessing Officer was challenged before the Commissioner of Wealth-tax (Appeals), who rejected this appeal relying upon the decision of the Supreme Court in the case of CWT v. J.K. Cotton Manufacturers Ltd. [1984] 146 ITR 552. On further appeal, however, the Income-tax Appellate Tribunal, Indore by its impugned order allowed the appeal and hence the Revenue has preferred the above appeal to this court. .....

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..... ombay High Court the said claim has been allowed by the Commissioner of Wealth-tax (Appeals) and, therefore, the assessee cannot be denied the benefit for the past years. Accordingly the Tribunal opined that the said deposit of Rs. 12 lakhs should be treated as a liability in the assessment year in question against the assets of the assessee and the Assessing Officer should allow deduction of the liability of Rs. 12 lakhs from the net wealth of the assessee. In view of the position, thus, emerging, we are of the opinion that the Income-tax Appellate Tribunal was justified in holding that deduction of the liability to the tune of Rs. 12 lakhs being security deposit against the property let out was allowable. The question is, therefore, dec .....

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