Law:

Section:

Section 2(m) read with section 2(e) and 5(1)(ix) of the Wealth-tax Act, 1957 - Net Wealth - Assessment year 1958-59 - Whether where stationary wire ropes and crab winches were used solely for raising agricultural crop, they fell within section 5(1)(ix) and were entitled to exclusion - Held, yes - Whether where there was no finding that electrical machinery, grinding mills etc were used for raising agricultural crop, value of such items was not allowable as deduction in computation of net wealth of assessee under section 5(1)(ix) - Held, yes - Whether where tube-wells and water supply plant were fixed of agriculture land, their value should be excluded from valuation of assets under section 2(e)(i) - Held, yes - Whether portion of assessed tax, which was kept in abeyance and, was not a present demand, was not allowable deduction from computation of value of wealth - Held, yes FACTS The assessee was a sterling company incorporated in Great Britain and was a manufacturer of tea grown in its own gardens in India. In the computation of its net wealth, as on the relevant valuation date, the assessee, inter aliaclaimed deduction in respect of the value of certain residential quarters, store houses and outhouses, plant and machinery, lorries and motor cars and also in respect of certain liabilities said to be taxation liabilities. The WTO rejected the claims made by the assessee. On appeal, AAC rejected the claim of the assessee in respect of residential house with the observations that they were not used for the assessee's own dwelling house but were merely used for the residential purposes of the employees of the assessee. Out of the claim for deduction amounting to Rs. 11,28,582 and Rs. 97,008 in respect of store houses and outhouses, the AAC allowed a deduction of Rs. 28,710 only and rejected the rest of the claim. With regard, however, to the claim of the assessee for deduction of value of the plant and machinery and lorries and motor cars the AAC held that the machinery valued at Rs. 4,74,255 were entitled to exemption, under section 5(1)(ix) of the Wealth-tax Act. With regard to the claim for deduction for liabilities, said to be taxation liabilities the AAC…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492