Loan deduction denied for fixed deposit in Wealth-tax Act ruling

The High Court of Madhya Pradesh held that deduction of a loan against a fixed deposit receipt was not permissible under the Wealth-tax Act as the fixed deposit amount was already exempted. The court ruled in favor of the Revenue and against the assessee.

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The High Court of Madhya Pradesh ruled against the assessee, stating that deduction of a loan raised against a fixed deposit receipt was not justified under the Wealth-tax Act. The court found that since the fixed deposit amount was already exempted, there could not be a further exemption for the loan borrowed against it. The judgment was in favor of the Revenue and against the assessee.

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