Law: Wealth Tax Act, (XV of 1963)

Section: Second Schedule,PartI,Clause(7)

Law: Wealth Tax Act, (XV of 1963)

Section: Second Schedule,PartI,Clause(7)

Wealth Tax Act, 1963 -- Second Schedule, Part I, Clause (7) -- Exemption -- Disallowance -- Excessive valuation of agricultural property -- Validity -- Assessee created assets out of foreign currency and encashment of Dollar Bearer Certificates remitted through official banking channel -- C.I.T.(A) confirmed disallowance on ground that assets were created out of sale of Dollar Bearer Certificates in secondary market and not through proper banking channel -- Declared value of agricultural property as per produced index also rejected -- Challenge to -- Whether Dollar Bearer Certificates were held to had been properly surrendered to office to issue and relevant provision as contained in Rule 7 of Wealth Tax Rules issued under S.R.O. 140(I)/91, dated 25-2-1991 were held to had properly been complied with by assessee -- Held yes -- Whether rupee proceeds having been realised by office of issue and credited to accounts of assessee was held to had constituted sufficient evidence of encashment of Dollar Bearer Certificates -- Held yes -- Whether rupee value realised on conversion of Dollar Bearer Certificates was held to be liable for exemption in terms of provision of clause (7)(ii) of Second Schedule -- Held yes -- Whether entire agricultural land was not irrigated it would be therefore, proper if valuation was made after applying corret index as applicable -- Held yes -- Exemption -- Dollar Bearer Certificate -- Encashment of -- Exemption was not allowed on the ground that asset were created out of sale of Dollar Bearer Certificate in the secondary market and not through proper banking channel in spite of encashment certificate issued by the Bank -- Validity -- Dollar Bearer Certificate were properly surrendered to the office of issue and the relevant provision as contained in Rule 7 of the rules issued under S.R.O. 140(I)/91, dated 25-02-1991 was properly complied with by the assessee -- Rupee proceeds having been realised by the officer of issue and credited to the accounts of the assesse constituted a sufficient evidence of encashment of such certificates -- Rupee value realised on conversion of Dollar Bearer Certificates was to be exempted in terms of provision…

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