Law: Wealth Tax Act, 1957

Section: 25(1),2(e)(2)(ii)

Wealth tax--- ---Exemption---Asset---"Annuity"---Meaning of---Amount standing to credit of subscriber under Compulsory Deposit Scheme (Income-tax Payers) Act, 1974---Constitutes "annuity" within the meaning of S.2(e)(2)(ii)---Is not an asset---Is entitled to exemption---Indian Wealth Tax Act, 1957, S.2(e)(2)(ii). The amount standing to the credit of a subscriber under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, and which is to be received, back by the subscriber in five equal installments every year together with interest constitutes "annuity" within the meaning of section 2(e)(2)(ii) of the Wealth Tax Act, 1957.and hence is not an "asset" within the meaning of section 2(e) and is, entitled to. exemption, under section 2(e)(2)(ii) of the Act. CWT v. Banerjee (P.K.) (1980) 125 ITR 641 (SC) ref. JUDGMENT By this petition, the petitioners have challenged the order passed by the Commissioner of Wealth Tax, Kanpur, under the provisions -of section 25(1) of the Wealth Tax Act, 1957 (hereinafter referred to as the Act), whereby the Commissioner has refused to entertain the application for revision filed by petitioners. The case of the petitioners is that under the provisions of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, the petitioners are liable to make deposit and they have been making such deposits under the said Act regularly with their bankers and the said amounts were to be received back by the petitioners in five equal installments, every year together with interest. The said amounts were shown standing to their credit in the compulsory deposit scheme and have been considered as one of the assets while making assessment of income. The Inspecting Assistant Commissioner, A Range, Kanpur, had taken into account the said amount as their wealth tax assets. However, the petitioners filed a revision application under section 25 of the Wealth Tax Act, 1957, on noticing that an order has been passed by the Income-tax Appellate Tribunal in the case of CWT v. S.D. Nargolwala in 5 ITD 690, wherein Tribunal has held that the aforesaid amounts were not taxable nor were liable to be assessed under the Wealth Tax Act standing to the credit of…

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