Law: Wealth Tax Act, 1957

Section: 27(1),2(e),5

Law: Income Tax Act, 1961

Section: 280D

(a) Wealth tax-- ----Deductions---Estimated amount of tax on capital gains---Not deductible--­Indian Wealth Tax Act, 1957. Held, (i) that the Tribunal was right in holding that the assessee was not entitled to deduction of the estimated amount of capital gains tax in computing his net wealth. Vinita Devi Singhania v. CWT (1991) 191 ITR 233 (Cal.) fol. (ii) that the Tribunal was justified in law in holding that "compulsory deposit" should be taken into consideration for the purpose of computing the net wealth of the assessee for the assessment years 1979-80 and 1980-81. Ahmed G.H. Ariff v. CWT (1970) 76 ITR 471 (SC); Bignold v. Giles (1859) 4 Drew 343; 113 Revised Reports 390; CWT v. Arundhati Balkrishna (1970) 77 ITR 505 (SC); CWT v. Banerjee (P.K.) (1980) 125 ITR 641 (SC); CWT v. Dorothy Martin (Mrs.) (1968) 69 ITR 586 (Cal.) and Nawab Sir Mir Osman Ali Khan (Late) v. CWT (1986) 162 ITR 888 (SC) ref. (b) Wealth tax--- ----Exemption---Annuity---Compulsory deposit made under Indian Compulsory Deposit Scheme (Income-tax Payers) Act, 1974---Not an annuity---Must be taken into account for computing net wealth---Indian Wealth Tax Act 1957, S.2(e)---Indian Compulsory Deposit Scheme (Income Tax Payers) Act, 1974--­Annuity Deposit Scheme, 1964. For the assessment years 1957-58 to 1974-75, the definition of the term "assets" in section 2(e) of the Wealth Tax Act, 1957, specifically excluded any right to any annuity in any case where the terms and conditions relating thereto precluded the commutation of any portion thereof into a lump sum grant. For and from the assessment year 1975-76, the exclusion is in respect of a right to any annuity (not being an annuity purchased by the assessee or purchased by any other person in pursuance of a contract with the assessee) in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant. In other words, the value of the assessee's right to receive any annuity purchased by him or purchased by another person in pursuance of a contract with the assessee is to be regarded, for and from the assessment year 1975-76, as his asset for the purpose of the levy of wealth tax,…

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