COMMISSIONER OF WEALTH TAX Vs. SETHU PARVATHI BAYI H H
LAWS(KER)-1978-2-2
HIGH COURT OF KERALA
Decided on February 21,1978

COMMISSIONER OF WEALTH-TAX Appellant
VERSUS
H.H. SETHU PARVATHI BAYI AND H.H. LEKSHMI BAYI Respondents

JUDGEMENT

Gopalan Nambiyar, C. J. - (1.) These two references are by the Income Tax Appellate Tribunal, Cochin Bench. The question of law referred for our opinion in ITR 28 of 1976 is "Whether, on the facts and in the circumstances of the case and on the interpretation of S.5(1A) of the Wealth Tax Act, 1957, the Appellate Tribunal is right in law in holding that the assessee is entitled to exemption of Rs. 70,000 invested by her in National Defence Certificates and in Defence Deposit Certificates in addition to the overall exemption of Rs. 1.50,000 granted to her by the Wealth Tax Officer under S.5(1) of the Act - and in ITR 37 of 1976, the question of law referred is "Whether, on the facts and in the circumstances of the case and on the interpretation of S.5(1A) of the Wealth Tax Act, 1957, the Appellate Tribunal is right in law in holding that the assessee is entitled to exemption of Rs. 70,000 invested by her in. National Defence Certificates and in Defence Deposit Certificates in addition to the overall exemption of Rs. 1,50,000 granted to her by the Wealth lax Officer under S.5(1) of the Act". The statement of facts has been sent up by the" Tribunal in ITR No. 37 of 1976; and in ITR 28 of 1976 the Tribunal stated that as the Tribunal had passed a common order in respect of both the assessees and, the facts are identical, and a statement of the case had been sent up in ITR 37of 1976, the said statement is made an Annexure to the case in ITR 28 of 1976 also.
(2.) The facts disclosed by the statement of the case in ITR 37 of 1976 are as follows: The assessee is Her Highness Smty. Lekshmi Bayi, Trivandrum. The assessment year involved is 1973-74. The assessment proceedings are under the Wealth Tax Act. The valuation date is on 31st March 1973. The assessee held National Defence Certificates and Defence Deposit Certificates of the value of Rs. 70,000 from even prior to 1st March 1970. In proceedings for assessment to wealth tax she claimed exemption for this amount of Rs. 70,000 in addition to the aggregate amount of Rs. 1,50,000 which represented the maximum limit of exemption to which she was entitled under S.5(1) of the Act. The Wealth Tax Officer and the Appellate Assistant Commissioner negatived the assessee's claim. But on further appeal, the Appellate Tribunal agreed with the assessee's contention and allowed the exemption in respect of the entire amount of Rs. 70,000 over and above the maximum limit of Rs. 1,50,000 to which she was entitled for exemption under the provisions of S.5(1) of the Act. At the instance of the Revenue, the question of law has been sent up for our opinion.
(3.) The facts are identical in ITR 28 of 1976 with the only difference that H. H. Sethu Parvathi Bayi, Trivandrum, is the assessee in that case,;


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