Law: Wealth Tax Act, (XV of 1963)

Section: 16(3),27(1),Sched.II,Clauses7(i),(ii)

(a) Interpretation of statutes--- ----Nothing can be read in the statute, nor any word can be added to it while interpreting the same. (b) Interpretation of statutes--- ----Intent of legislature-Scope---Principal source of interpretation is the intent of legislature but once the court has discovered the intention of legislature by reviewing the explanation given by legislature for incorporating any statute then court has to give effect to that interpretation. (c) Wealth Tax Act (XV of 1963)--- ----Ss. 16(3), 27(1) & Sched. II, Clauses 7(i), (ii)---Central Board of Revenue Circular No.30(2) Tp-iii/90, dated 13-11-1990---Central Board of Revenue Circular No. 8/42-DWT/84, dated 30-6-1985---Exemption, claiming of---Onus to prove---Foreign remittance-Subsequent conversions---Contention of authorities was that only assets created on first conversion of foreign exchange repatriated through banking channels was entitled to exemption under clause 7(ii) of Second Schedule to Wealth Tax Act, 1963, and any further conversions were not exempted---Validity---Exemption had to be strictly construed and onus was on the person claiming the exemption to establish that he was entitled to such exemption and whenever two interpretations of an exemption were possible the interpretation which was against the grant of exemption had to be given effect---Only one interpretation of clause 7 (ii) of Second Schedule to Wealth Tax Act, 1963, was possible that exemption in respect of assets created out of foreign remittance was applicable not only to first conversion of asset but also to subsequent conversion so long as source of fund remained foreign remittance received through banking channels during the period as provided under the clause, to the extent of amount received through foreign remittance---Exemption was also available in respect of subsequent conversions of original asset created from foreign remittance received through banking channels---Appeal was dismissed in circumstances. Iqbal Haji Ali Muhammad v. Inspecting Additional Commissioner of Income/Wealth Tax and others 2006 CLC 1000 and Commissioner of Income Tax/Wealth Tax Companies Zone-I, Lahore v. Zoraiz Lashari 2005 PTD…

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