1991 (4) TMI 82

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....ntal reference relating to the assessee's wealth-tax assessments for assessment years 1971-72 and 1972-73, the Tribunal has referred to this court the following questions of law for opinion under section 27(1) of the Wealth-tax Act, 1957 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the loans aggregating to Rs. 1,59,045 and raise....

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....assets as under : ------------------------------------------------------------------------------------------------------------------------------------------------- Assessment Security for loan Amount of Total Remarks year obtained or overdraft loan -------------------------------------------------------------------------------------------------------------------------------------------....

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....---------------------------------- Counsel are agreed that, in view of our court's judgment in the, case of CWT v. Vasantkumar Govindji Kotak [1990] 186 ITR 91, the loans, in so far as they are taken on the security of assets not chargeable to wealth-tax, wholly require to be disallowed under section 2(m)(ii) of the Wealthtax Act, 1957. Counsel are also agreed that the loans of Rs. 3,050 taken ....

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....0,000 odd only. There being no material to identify the shares pledged, it may be reasonably assumed that the loans were taken against the security of the shares which were not exempt from tax. We drew this presumption as we find that, the limit of exemption in the two years under reference was an overall limit which was applicable to a number of clauses. On course, clause (iv) was not included th....