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TMI Blog1987 (5) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... ay. 2. None turned up on behalf of the assessee when the appeal came up for hearing on 23-4-1987. There was no application for adjournment of the date fixed for hearing. On the earlier occasion also, even though when the appeal came up for hearing on 4-2-1987 and the hearing of the appeal was adjourned on the request of the assessee's counsel Shri Iyer to 9-2-1987 under intimation to him, none t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which had been incurred in relation to shares in respect of which wealth-tax was not chargeable, the claim of deduction of this liability in working out the not wealth was not admissible. The Wealth-tax Officer, therefore, allowed exemption from the value of shares to the extent of Rs. 1,50,000 as laid down under section 5(1A) of the Wealth-tax Act, 1957, and included the balance, that is Rs. 1,33 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench ruling of the Hon'ble High Court of Madras in the case of CWT v. K.S. Vaidyanathan [1985] 153 ITR 11 wherein their Lordships laid down that where the debts, deduction of which was claimed, were secured on assets part of whose value was exempt from wealth-tax, the debts have got to be disallowed in proportion to the exempted value of the assets. On this basis, according to Shri Vishwanathan, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned Judges of the Full Bench of the Hon'ble High Court of Madras on how the apportionment of the debt should be done between the assets which were exempted from wealth-tax and the assets which were not exempt. On the other hand, the Central Board of Direct Taxes, by Instruction No. 1070 dated 28-6-1977, examined this very issue and directed that where debts are secured on, or have been incurred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that the assessee was entitled to the claim of deduction of the debt of Rs. 1,31,601 incurred for the purchase of shares of the total value of Rs. 2,83,150 out of the value of those shares which were not exempt from wealth-tax and were included in the assessee's net wealth, that is Rs. 1,33,150. The claim of deduction of Rs. 1,33,601 in working out the assessee's net wealth should, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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