SHASHIRKUMAR BAJAJ Vs. FIRST WEALTH TAX OFFICER
LAWS(IT)-1989-11-11
INCOME TAX APPELLATE TRIBUNAL
Decided on November 28,1989

Appellant
VERSUS
Respondents

JUDGEMENT

Per S.Kannan, Accountant Member - Centered as they are on certain common issues, all the 119 appeals filed by the assessees were heard together and, for the sake of convenience, are disposed of by a common order. - (1.)
(2.)At the time of hearing, Shri Y. P. Trivedi, the learned Counsel for the assessees, stated that, since identical issues are involved in these cases, he would be advancing his arguments in the lead-case of Shri Shishirkumar Bajaj, and that he said arguments would equally apply to other cases also.
Common issue No. 1 : The amounts deposited by the assessees under the Compulsory Deposit Scheme : The assessees case before the W. T. O. was that the amounts deposited by then under the Compulsory Deposit Scheme were exempt from wealth-tax. Reliance was placed in this regard on the decision of the Delhi Tribunal in the case of WTO v. S. D. Nargolwala [1983] 5 ITD 690. Remarking that the legal effect of section 7A of the C. D. S. (I. T. Payers) Act, 1974 had not been considered in that case, the W. T. O. held that, as provided in that section, the amount of compulsory deposit should be deemed to be a deposit with a banking company to which the Banking Company Regulation Act, 1949 applies. In this view of the matter, therefore, rejecting the assessees claim for exemption, the W. T. O. brought the sums in question to tax.

(3.)THE assessees were unsuccessful before the C. W. T. (Appeals), who noted, inter alia, that the Nagpur Bench of the I. T. A. T. had decided the issue in favour of the Department vide order dated 27-1-1988 in W. T. A. Nos. 36(Nag) /86 and batch. He, therefore, declined to interfere in the matter.


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