https://www.taxtmi.com/caselaws?id=6905 The court ruled against the assessee in a case concerning the treatment of loans secured by life insurance policies under the Wealth-tax Act. The court held that the loan, converted into taxable assets, could not be exempted from net wealth calculation as it no longer qualified as a debt under section 5(1)(vi) of the Act. Emphasizing the Act's intent to promote saving through investments in insurance policies, the court concluded that withdrawing from such exempted assets would negate the Act's purpose. The court found in favor of the department, determining that the loan secured by insurance policies did not qualify for exemption under the Act. en-us Fri, 23 Dec 1966 00:00:00 +0530 Sat, 07 Feb 2009 08:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6905 The court ruled against the assessee in a case concerning the treatment of loans secured by life insurance policies under the Wealth-tax Act. The court held that the loan, converted into taxable assets, could not be exempted from net wealth calculation as it no longer qualified as a debt under section 5(1)(vi) of the Act. Emphasizing the Act's intent to promote saving through investments in insurance policies, the court concluded that withdrawing from such exempted assets would negate the Act's purpose. The court found in favor of the department, determining that the loan secured by insurance policies did not qualify for exemption under the Act. Case-Laws Wealth-tax Fri, 23 Dec 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6905