9911796707
TMI Blog1991 (4) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... or assessment years 1971-72 and 1972-73, the Tribunal has referred to this court the following questions of law for opinion under section 27(1) of the Wealth-tax Act, 1957 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the loans aggregating to Rs. 1,59,045 and raised by the assessee on the security of his life insurance policy, mot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------------------------------------------------------------------ Assessment Security for loan Amount of Total Remarks year obtained or overdraft loan --------------------------------------------------------------------------------------------------------------------------------------------------- (1) (2) (3) (4) (5) ------------------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... our court's judgment in the, case of CWT v. Vasantkumar Govindji Kotak [1990] 186 ITR 91, the loans, in so far as they are taken on the security of assets not chargeable to wealth-tax, wholly require to be disallowed under section 2(m)(ii) of the Wealthtax Act, 1957. Counsel are also agreed that the loans of Rs. 3,050 taken in both the years against the life insurance policy will fall under this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be reasonably assumed that the loans were taken against the security of the shares which were not exempt from tax. We drew this presumption as we find that, the limit of exemption in the two years under reference was an overall limit which was applicable to a number of clauses. On course, clause (iv) was not included therein. Accordingly, we answer the questions thus : The loan to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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