COMMISSIONER OF WEALTH TAX Vs. BALAKRISHNAN A R

JUDGEMENT

(1.) UNDER section 27(1) of the Wealth-tax Act, 1957, at the instance of the Revenue, the following question of law has been referred for the opinion of this court :

(2.) WE find that the question referred has already been dealt with in the decision of a Full Bench of this court in CIT v. K. S. Vaidyanathan [1985] 153 ITR 11. The present case will fall under category (ii), in that the Tribunal has allowed deduction of the entire debt as a whole as against the allowance of a part in proportion to the tax exempted value of the secured assessment. Consequently, in view of the decision of the Full Bench referred to earlier, the questions referred to us have to be answered in the negative and in favour of the Revenue. The Tribunal is directed to work out the proportion on the facts of this case. There will be no order as to costs in this reference.