2001 (2) TMI 281

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....e limited company engaged in the business of manufacture and sale of Lloyd wool and other allied products. It also derived income from dividend, rent, commission, etc. 2. Ground No. 1 is directed against the disallowance of the claim of deduction amounting to Rs. 1,55,820 paid in pursuance to s. 40 of the Finance Act, 1983. The AO disallowed the claim on the ground that such deduction was prohi....

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....ed CIT(A) had not correctly appreciated the provisions of s. 40 of the Finance Act, 1983. He added that under s. 40 of the Finance Act, 1983, wealth-tax was leviable on specific assets and not on total wealth of the assessee and, therefore, this wealth-tax was not covered under the provisions of s. 40(a)(iia) of the Act. He relied on the Supreme Court decision in the case of ACC Ltd. and Delhi Hig....

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.... in any country outside India or any tax chargeable under such law with reference to the value of the assets of, or the capital employed in, a business or profession carried on by the assessee, whether or not the debts of the business or profession are allowed as deduction in computing the amount with reference to which such tax is charged, but does not include any tax chargeable with reference to....

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....dingly, the wealth-tax chargeable with reference to the value of any particular asset of the business or profession will not be covered by the prohibition clause of s. 40(a)(iia) of the IT Act, 1961, and as such wealth-tax could be admissible for deduction. Admittedly, the wealth-tax paid in pursuance to s. 40 of the Finance Act, 1983, was with reference to the value of particular asset of the bus....