1982 (11) TMI 26

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.....-This is a reference under s. 27(1) of the W.T. Act, 1957 (hereinafter referred to as " the Act "), made by the Income-tax Appellate Tribunal, Gauhati Bench, at the instance of the CWT arising out of the order of the Appellate Tribunal dated October 23, 1973, passed in Wealth-tax Appeals Nos. 65 (Gau) to 72 (Gau) of 1971-72 relating to the assessment years 1960-61 to 1967-68. The question referre....

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.... is also a proprietor of M/s. Chowkhani Iron and Steel Works, Jaipur. While computing the interest of the assessee in the two firms the WTO considered the claim for deduction of agricultural income-tax liabilities in respect of the tea garden which is an asset of M/s. Jorharmal Murlidhar & Co. This reason given by the WTO was that agricultural income-tax is a debt incurred in relation to agricultu....

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....erever located, belonging to the assessee on the valuation date, including assets required to be included in his net wealth as on that date under this Act, is in excess of the aggregate value of all the debts owed by the assessee on the valuation date other than (ii) debts which are secured on, or which have been incurred in relation to, any asset in respect of which wealth-tax is not payable unde....

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....cannot be deducted. Similarly debts which are secured on assets in respect of which wealth-tax is not payable also cannot be deducted. Agricultural income-tax is, undoubtedly, debt which is incurred in relation to assets, such as agricultural land and growing crops, which are not included in the definition of assets as defined in cl. (e) of s. 2. As agricultural land and growing crops are not incl....