WEALTH TAX OFFICER Vs. S D NARGOLWALA
INCOME TAX APPELLATE TRIBUNAL
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O.P. Garg, Judicial Member -
(1.) REVENUE's appeal against order dated 7-1-1981 of the A AC and the assessee's appeals against common order dated 19-1-1982 of the Commissioner (Appeals) were taken up together for hearing.
(2.) 1978-79 to 1980-81 are the assessment years concerned. March 31 immediately preceding each assessment year is the corresponding valuation date. Assessee is an individual. Facts of the three assessment years under consideration are somewhat similar; We, therefore, proceed to detail the facts pertaining to the assessment year 1978-79. only. The dispute relates to includibility of sums of Rs. 11,840, Rs. 39,453 and Rs. 52,335 respectively, for the three years.
Under the provisions of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 ('the CDS Act'), the assessee had been from year to year depositing certain amounts by way of compulsory deposits. Accordingly, during the financial year 1977-78, the assessee freshly deposited sum totalling Rs. 11.840. Balance standing to assessee's credit in the CDS account is not known. Presumably, the WTO allowed benefit of exemption under Section 5(1) of the Wealth-tax Act, 1957 ('the Act') as regards the remaining portion of the said balance.
For the assessment year 1978-79 the WTO held the said fresh deposit to be the assessee's asset, of the nature of a deposit with a banking company covered by the Banking Regulation Act, 1949, but he declined to grant benefit of exemption under Clause (xxvi) of Section 5(1) of the reasoning that the said fresh deposit had been owned by the assessee up to the valuation date for a period of less than six months and that, therefore, the bar in Section 5(3)(b) came in the way of benefit of exemption. The WTO, however, gave no finding with reference to the provisions of the Explanation to Section 5(3), so far as computation of the said six months period was concerned.
(3.) FOR the assessment years 1979-80 and 1980-81, the WTO included in the computation of assessee's net wealth sums of Rs. 39,453 and Rs. 52,335 respectively, which reflected balances in the compulsory deposit account. In this regard, the WTO also mentioned that the Tribunal had in the assessee's own case relating to earlier assessment years upheld as per common judgment dated 11-6-1979 the WTO's finding as to includibility of the sum of fresh deposit under the said CDS Act in computation of assessee's net wealth.;
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