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Section 5(1)(vi) of the wealth-tax act, 1957-exemption-insurance policy-whether annuity policy is an insurance policy for claiming exemption under section 5(1)(vi)-held, yes Facts The assessee's claim for exemption under section 5(l)(vi) in respect of her annuity policy on the basis of the Punjab High Court's decision in the case of CUT v. Yuvraj Amrinder Singh [1974] 96 ITR 101 , was repelled by the. WTO on the ground that this decision was under appeal in the Supreme Court. The AAC reversed the WTO's orders on appeal, and the Tribunal confirmed the AAC's order on second appeal. On reference: Held The question had already been settled by the High Court in the case of CWT v. Yuvraj Amrinder Singh (supra) wherein it was held that the annuity policy was a policy of insurance and was covered by section 5(1)(vi ). It was not shown by the department that the said had been overruled by the Supreme Court. Merely because the policy became due on a particular date, the whole sum had not become due on that date. Only certain sums would become due and payable to the annuitant every year. Wealth-tax could be levied only on the amount which had become due and payable during the relevant assessment years. Hence, the annuity policy was a policy of insurance and was covered by the exemption under section 5(1)(vi ). Case referred to CWT v. Yuvraj Amrinder Singh [1974] 96 ITR 101 (Punj. & Har.). Judgment Rajendra Nath Mittal J.-This judgment will dispose of W.T. References Nos. 20 and 19 of 1976, which relate to the assessment years 1972-73 and 1973-74, respectively. The Wealth-tax Appellate Tribunal, Chandigarh Bench, has referred the following question for the opinion of the court in W.T. Reference No. 20 of 1976 : "Whether, on the facts and in the circumstances of the case, the interest of the assessee in the annuity policy is exempt from wealth-tax under the provisions of section 5(1)(vi) of the Wealth-tax Act, 1957, for the assessment year 1972-73 ?" The facts, as given in the statement of the case, are that the assessment year commenced on 1st April, 1972. The relevant valuation date is 31st March, 1972. The assessee is an "individual". The WTO completed the assessment…

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