Law:

Section:

Section 2(c), read with section 5 of the W ealth-tax Act, 1957 - Assets - Assessment year 1978-79 - Whether an amount deposited, under any statutory enactment or otherwise, remains in ownership and belongs to assessee and, therefore, it is an 'asset' which having not been excluded for granting exemption under section 5 is liable to be included in net wealth subject to exemption granted under section 5(1A) -Held, yes FACTS The assessee an individual, had been assessed to wealth-tax for the assessment year 1978-79. Before the Tribunal, the assessee raised a ground that the amount standing to the credit in the Compulsory Deposit Scheme was to be excluded from the taxable wealth under section 2(e)(2)( ii). The Tribunal allowed the assessee's claim. On reference, the revenue submitted that the amount standing to the credit of the assessee in the Compulsory D eposit Scheme was not an exempted item and, therefore, it could not have been excluded from the net wealth and at best it ought to have been included while granting exemption of the deposits in a banking company for the maximum prescribed limit of Rs. 1.5 lakhs which exemption had been allowed in full by the assessing authority. HELD The amount deposited in the C ompulsory Deposit Scheme was repayable in five equal instalments after the expiry period. The annuity had been purchased by the assessee, therefore, it was not excluded from the term "assts" as defined under section 2(e )(2)(ii). Further by the Finance (No.2) Act of 1980 section 7A was inserted in the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, with effect from 1-4-1975, which provided that for grant of exemption under section 5 of the 1957 Act, the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the Banking Regulation Act, 1949, applies. Thus, a deposit made under the C ompulsory Deposit Scheme is to be treated at par with the deposits with the banks and is liable to exemption under section 5(1A) subject to the limit specified therein. The submission that the amount standing to the credit in theCompulsory Deposit S cheme was not an "asset" was devoid of any substance. W hether the amount is…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492