TaxTMI 
TaxTMI 
2016 (8) TMI 1583
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....ounds in her appeal, however the crux of the issue is as follows:- "i) The learned Commissioner of Wealth Tax (Appeals) has erred in confirming the order of the learned Assessing Officer who had failed to value the immovable property as per section 7 and Schedule III of the Wealth Tax Act. ii) The learned Commissioner of Wealth Tax (Appeals) has erred in confirming the order of the learned Assessing Officer who has not considered the liability of Rs. 40,00,000/- incurred by the assessee towards M/s. Jaya Publications for purchase of jewellery. iii) The learned Commissioner of Wealth Tax (Appeals) has erred in confirming the order of the learned Assessing Officer who had failed to value the interest in partnership ....
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.... 3. Silverware (7346 x 5) Rs. 36,730 4. Diamond & Gold Jewellery at cost Rs. 44,77,920 5. Assessee's interest in partnership firm: a) M/s. Sasi Enterprises 50% of Rs. 1,25,00,875 Rs. 62,50,438 b) M/s. Jaya Publications 50% of Rs. 3,61,23,314/- : Rs. 1,80,61,657 c) M/s.Jaya Real Estates 50% of Rs. 31,84,000/- : Rs. 15,92,000 d) M/s. J.S.Housing Development 50% of Rs. 44,25,000/- Rs. 22,12,500 e) M/s. Jaya Contractors & Builders 50% of Rs. 23,55,000 : Rs. 11,77,500 f) M/s. J. Farm House 50% of Rs. 1,21,31,880/- : Rs. 60,65,940 h) M/s. green Farm House as in earlier year : Rs. 4,32,700 ....
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....ssessee by considering all the issues involved in the appeal and by valuing the assets as per the provisions of the Act. 6. Though the learned Departmental Representative vehemently opposed to the submissions of the learned Authorized Representative he could not successfully controvert to the submissions of the learned Authorized Representative. 7. We have heard the rival submissions and carefully perused the materials available on record. Ground No.1: Valuation of immovable property as per section 7 Schedule III of the Wealth Tax Act." 7.1 The learned Authorized Representative has not disputed the five properties that have to be taken into account for the purpose of determining the wealth of the assessee. The only dispute is wi....
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....r thereof on the date on which the construction of such house was completed: (ii) house includes a part of a house being an independent residential unit.] 7.2 From the above it is evident that the Revenue, has to mandatorily value the assets of the assessee in accordance with Section 7 and Schedule-III of the Wealth Tax Act at the option of the assessee. It appears from the order of the Revenue that these provisions of the Wealth Tax Act are lost sight off. Therefore, we hereby direct the learned Wealth Tax Officer to compute the value of the immovable properties of the assessee in accordance with section 7 Schedule III PartB of the Wealth Tax Act for the purpose of levying Wealth Tax in the case of the assessee. Thus this groun....
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....nly issue involved is whether it is attributable for the purchase of jewellery. There is nothing on record to suggest that these liabilities are not attributable for the purchase of jewellery. Obviously, it has to be related to one of the assets of the assessee which the assessee claims it to be jewellery. In any case, as per the definition of 'Net Wealth' section 2(m) of the Wealth Tax Act, the liability of debt has to be excluded while determining the net wealth of the assessee. Therefore, we hereby direct the learned Wealth Tax Officer to exclude the liability while valuing the jewellery of the assessee. Accordingly this issue is also decided in favour of the assessee. Ground No.3: Valuation of the interest in partnership firm in acco....