MILKHI RAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE matter here concerns the extent to which exemption is to be granted to the assessee in respect of the loan taken by him for the purchase of agriculture land. It appears that, during the three assessment years 1974-75, 1975-76 and 1976-77, some amount taken as a loan for the purchase of agriculture land was returned. the question arises as to whether the balance of the loan is to be adjusted only against the value of agriculture land or also against the other assets of the assessee ? In this context, the two questions referred for the opinion of this court are :

(2.) THE matter raised here clearly falls within the purview of Circular No. 1070, dated June 28, 1977, of the Board, which is in the following terms :