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TMI Blog2016 (8) TMI 1583X X X X Extracts X X X X X X X X Extracts X X X X ..... alth Tax Act makes it clear that any liability owing to asset has to be excluded. From the facts of the case, it is not in dispute that the assessees have not incurred the liability of ₹ 40.00 lakhs towards M/s. Jaya Publication. The existence of such liability is also not disproved as on date. Now the only issue involved is whether it is attributable for the purchase of jewellery. There is nothing on record to suggest that these liabilities are not attributable for the purchase of jewellery. Obviously, it has to be related to one of the assets of the assessee which the assessee claims it to be jewellery. In any case, as per the definition of Net Wealth section 2(m) of the Wealth Tax Act, the liability of debt has to be excluded while determining the net wealth of the assessee. Therefore, we hereby direct the learned Wealth Tax Officer to exclude the liability while valuing the jewellery of the assessee. Accordingly this issue is also decided in favour of the assessee. Valuation of the interest in partnership firm in accordance with section 7(1) read with schedule III-15 16 Part- E - On perusing the relevant provisions of the Wealth Tax Act we find merit in the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ichy: ₹ 7,01,250 3. House at No.16, Radhika Nagar, Anjaiah Garden, Boosareddy, Suda Road, Secundrabad (as admitted) : ₹ 7,65,000 4. Property at Haridranadhi West Street, Mannargudi(As admitted) : ₹ 6,78,000 5. Property at 1/1. Luz Avenue, Mylapore at cost (1/6 value) ₹ 23,55,000 Total ₹ 51,36,750 II. Movables: Vehicles a) Tata Siera Car (Vinod Video Vission) ₹ 1,09,230 b) Tata Siera Car (Vinod Video Vission) ₹ 10,60,790 c) Ambassadar Car (Vinod Video Vission) ₹ 3,437 d) Aramada Jeep (M/s. Metal King) ₹ 2,01,600 e) Maruthi Car (M/s.Metal King) ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted by the Revenue because they are not in accordance with section 7(1) read with Schedule III and its relevant provisions of the Wealth Tax Act. The learned Authorized Representative further submitted that the assessee will not have any grievance if the valuations of the aforesaid assets of the assessee are valued according to the provisions of the Wealth Tax Act. The learned Authorized Representative further submitted that since the assessee had incurred liability of Rs.40,00,000/- towards M/s. Jaya Publications for acquiring jewellery, the same should be reduced from the value of jewellery. The learned Authorized Representative further submitted that various facts were either overlooked or not considered by citing flimsy reasons by the Revenue while valuing the assets of the assessee. Therefore, the learned Authorized Representative submitted that due relief may be given to the assessee by considering all the issues involved in the appeal and by valuing the assets as per the provisions of the Act. 6. Though the learned Departmental Representative vehemently opposed to the submissions of the learned Authorized Representative he could not successfully controvert to the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re lost sight off. Therefore, we hereby direct the learned Wealth Tax Officer to compute the value of the immovable properties of the assessee in accordance with section 7 Schedule III PartB of the Wealth Tax Act for the purpose of levying Wealth Tax in the case of the assessee. Thus this ground is allowed in favour of the assessee. Ground No.2 : Consideration of the liability of ₹ 40,00,000/- incurred by the assessee towards M/s. Jaya Publications for purchase of jewellery. 8. The learned Authorized Representative has not disputed the valuation adopted by the learned Wealth Tax Officer for valuing the gold, silver and diamond jewellery. He has only pointed out that the learned Wealth Tax Officer has not considered the liability of ₹ 40.00 lakhs incurred by the assessee towards M/s. Jaya Publications for purchasing these jewellery. On perusing the order of the learned Wealth Tax Officer, it is revealed that he has not taken the liability into consideration only for the reason that the assessee has not produced any evidence to show that the liability was incurred in relation to the asset and it was subsisting on the valuation day. This finding is also endors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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