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TMI Blog1984 (1) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... usband of Harinder Kaur, a sum of Rs. 22,992 on 10-12-1965. When these amounts were advanced, no documents as such were executed by way of promissory notes, etc. After these advances were given, there was no recovery. Thus, before any recovery could be effected, Darshan Singh Chawla died on 31-8-1972. The limitation for recovery of the loan in both the cases had expired on 10-12-1968. 3. Shri Ardaman Singh died on 25-12-1976. But during his lifetime in the year 1966-67, he had advanced a sum of Rs. 15,970 to Delhi Land Finance Co. Ltd. It appears, there were further advances to this company and by the end of the financial year 1966-67, i.e., on 31-3-1967, the amount advanced to the abovesaid company was Rs. 37,937. This was for purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch not includible in the net wealth of the assessee. It had been projected to him that due to limitation, the amounts had become irrecoverable in law. However, the WTO referred to some order made by the AAC for the assessment years 1964-65 to 1968-69 dated 22-2-1980 and relying upon the observations of the AAC that in the type of advances under consideration, the Limitation Act, 1963 could not apply, held that the amounts were not hit by limitation and as such, could not be excluded from the net wealth of the assessee. This decision of his, however, was applied wholly to the assessment years 1969-70 to 1972-73. Since Shri Darshan Singh Chawla had died on 31-8-1972, the WTO conceded that the amount of Rs. 22,992 could not be recovered even b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment years 1971-72 to 1975-76. This was disputed in appeal but was confirmed. 7. The WTO had taken the value of agricultural land in villages Rounta and Talwandi at Rs. 70,000 and Rs. 7,000, respectively. It was contended that the land in village Rounta was in adverse possession of the tenants who were not paying anything to the assessee and as such the value thereof could not be anything at all includible in the net wealth of the assessee. It was contended before the WTO and before the AAC that the value thereof be taken as nil. However, the value of land in village Rounta taken at Rs. 70,000 was confirmed by the AAC. This addition is in dispute for the assessment years 1974-75 and 1975-76. 8. It was contended before us by the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is not applicable for the reasons given by the authorities below. It was further emphasised that there was no proof either of demand of the money or repayment thereof and as such the amounts cannot be excluded from the net wealth of the assessee. It was further contended that under section 7(1) of the Act, the value of these lands had to be taken by considering a special hypothetical market for them. 11. It was further contended that insofar as the amount of Rs. 38,000 is concerned, the details of the company which did not return the amount had not been given and as such the amount could not be allowed. With regard to the value of the land in village Rounta, it was submitted that the fact that the land was in adverse possession of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dates of the impugned assessments. Lack of action for recovery cannot be made a ground for inclusion of these amounts as part of net wealth for any of the assessment years as the market value for them would be nil, and in fact, was nil. Hence, these are excluded from the net wealth of the assessee wherever these were included in the impugned assessments now before us. 14. Now coming to the sum of Rs. 38,000, we find that the assessee's advance for purchase of a plot of land was not repaid. The assessee gave the name of the company and place where it was functioning. The grievance of the authorities below is that no documentary evidence was given. When the company to which the amount was advanced has become defunct, what documentary evide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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