COMMISSIONER OF WEALTH TAX Vs. NADIR RASHID

JUDGEMENT

(1.) THIS is a reference at the instance of the Revenue. The following question of law has been referred by the Tribunal for answer by this court :

(2.) THE Wealth-tax Officer disallowed the claim in view of Section 2(m)(ii) of the Wealth-tax Act. THE appellate authority allowed the assessees' claim on the ground that in the assessment year 1975-76, these loans were allowed to be deducted in a group of cases of the assessees. In the other appeals which related to the assessment year 1977-78 also, the Wealth-tax Officer disallowed a portion of liability of the loan of Bhopal Stud and Agricultural Farm in determining the value of the shares of these assessees in the said business and this was approved by the Appellate Assistant Commissioner of Wealth-tax to whom the assessees had preferred the appeals. This was challenged in the aforesaid appeals before the Tribunal.

(3.) SHRI Tankha, learned counsel for the Revenue, pointed out that this circular was issued on June 28, 1977, and the Madras decision related to the assessment years 1971-72, 1972-73 and 1973-74. So far as the decision of this court is concerned, it related to the assessment year 1977-78. Be that as it may, the fact remains that this circular has a relevance in the matter and it is binding on all the subordinate authorities, but somehow it appears that the circular has been missed by all the authorities below as also by the Tribunal. The circular reads as under :