- (1.) FOLLOWING questions of law have been referred for opinion of this Court by the Tribunal, Chandigarh Bench, Chandigarh, "1. Whether, on the facts and in the circumstances of the case, the gold bonds held by the assessee were exempt from being assessed under the WT Act till these were not redeemed though the date of redemption was over ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the amount of deposit under the CDS was exempt under the WT Act -
(2.) VALUED gold receivable under the said bonds at Rs. 3,36,090, rejecting the contention of the assessee that the bonds were exempt from being assessed under the WT Act till they are redeemed. The WTO also included deposit of Rs. 66,670 in CDS.
(3.) THE Tribunal upheld the plea of the assessee and held that the assessee was entitled to exemption in respect of both the items. Findings of the Tribunal are: "20. Ground No. 6 relates to the addition of Rs. 12,750 on account of interest on CDS. The learned counsel for the assessee has submitted that interest on CDS is exempt. The learned Departmental Representative has argued that there was nothing to show that such interest was exempt under any provision of law. The learned counsel has, however, invited our attention to the circular of the CDOT, relating to the annuities at pp. 7 and 8 of assessee's compilation. We have perused the paper and we find that the so -called circular related to the annuities and not the interest on CDS. Therefore, the claim of the assessee does not succeed. The circular said to be relevant does not actually relate to interest on CDS but it pertains to the annuities. We, therefore, decline to accept the contention of the learned counsel. Ground No. 6 is, therefore, rejected............ 22. Ground No. 2 relates to the valuation of gold bonds on the basis of market price on the date of actual redemption. The CIT(A) has followed the order of the Tribunal in the case of Rattan Chand and Sons. The learned Departmental Representative has argued that the view taken by the CIT(A) was not correct because the date on which the bonds could be redeemed is the relevant date and not the date of actual redemption by the assessee. 23. The learned counsel for the assessee has in reply argued that the Tribunal has already held the view that the bonds in the hands of the assessee were exempt till redeemed though the date of redemption might be over. If the assessee did not choose to redeem, he is entitled to claim exemption. It has further been argued by the learned counsel that the CIT(A) has only remanded the case to the WTO on this question for reappraisal in the light of earlier decision. We, therefore, do not find any fault with the order of the CIT(A) and ground No. 2 also fails." We find that the first question is covered by judgment of Gujarat High Court in Shankerlal Gafurbhai Patel vs. CIT (2004) 190 CTR (Guj) 363 : (2004) 269 ITR 508 (Guj). In the said judgment, it was noticed that gold bonds were 1993. It was observed that exemption continued irrespective of date of maturity. Relevant observations are : respect of the gold bond is concerned and the gold bond remained as it was even after its date of maturity and the exemption given to it in respect of payment of wealth -tax continued. Looking to the fact that s. 5(1)(xvia) continued to give exemption to the gold bond, one can believe that the intention of the legislature was to give benefit to its holder in respect of payment of wealth -tax. Had there been no such intention, there was no purpose in continuing the exemption payment of wealth -tax under the Act, no provision was incorporated that the bonds would be subject to exemption only till its date of maturity. Even after the date of maturity when the statute continued the provision with regard to the exemption, we believe that the intention of the legislature was to give exemption in respect of payment of wealth -tax to the holders of gold bond." Following the above decisions, we decide the first question in favour of the assessee and against the Revenue. ;