1981 (1) TMI 108

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.... not permit deduction of debts secured against assets which are exempt from tax. He found that in the form of return there was a specific note below annexure s. VI as under: "Debts which have been incurred for acquiring assets which are exempted from wealth-tax or for utilisation on such assets or debts which have been secured for repayment on such assets should not be included in Annexure V or VI The ITO, therefore reopened the assessments of the assessment should be up under s. 17(1)(a) of the WT Act. While making the assessment this was disallowed as a claim of debt. 2. When the matter came before the AAC it was submitted before him that the assessment have been reopened by reappraisal of the same facts and even if any wealth had esc....

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....result of the assessee not disclosing the full and correct facts regarding the nature of this loan. It was, therefore, submitted that the provisions of s. 17(1)(a) were clearly applicable and the assessments had rightly been reopened. 4. In this connection reference was made to an earlier decision of the Tribunal in the case of Smf. Ansuiya Devi Singhania WTA No. 107/Alld/(1980) where the Tribunal had upheld the orders of the AAC and had held that the reassessment proceedings were invalid. It was submitted by the Deptl. Rep. that there has been no proper consideration of the provisions of law and the requirements given in the rule and the form of return and if these are taken into consideration, it would be clear that the Tribunal arrived....