Law: Wealth Tax Act, (XV of 1963)

Section: 5,5(1),cl.(xv)(i),(ii),SecondSched.,cl.7 (i),(ii)&27

Wealth Tax Act (XV of 1963)--Ss. 5(1), cl.(xv)(i), (ii), Second Sched., cl.7(i), (ii) & 27---Foreign Exchange Bearer Certificate Rules, 1985, R.5---C.B.R. Circular No.I.T.O. 1(42)/1985, dated 22-8-1985---Exemption---Admissibility---Reference--­Assessee claimed exemption from Wealth Tax on account of Foreign Exchange Bearer Certificates---Assessing Officer did not accept the claim of exemption on account of encashment of Foreign Exchange Bearer Certificates and rejected the same on the basis of C.B.R. Circular No.IT0-1(42)/I985, dated 22-8-1985---Such order of the Assessing Officer was confirmed by the Appellate Tribunal on the ground that no proof was adduced regarding receipt of such Foreign Exchange in Pakistan through normal Banking channels---Case of the assessee was, thus, not covered either by para. (i) or (ii) of cl. (xv) of S.5 of the Wealth Tax Act, 1963---Contention of the assessee was that he was not required to adduce any evidence to establish that the foreign exchange was received through normal Banking channels in view of sub-clause (i) of cl. (xv) of S.5 of the Wealth Tax Act, 1963---Validity--­Case of the assessee was not covered under sub-clause (i) of cl. (xv) of S.5 of the Wealth Tax Act, 1963---Foreign Exchange Bearer Certificates purchased from remittance received in Pakistan brought the case of the assessee within the scope of sub-clause (ii) of cl. (xv) of S.5 of the Wealth Tax Act, 1963--­One of the ingredients, for entitling the assessee to claim exemption in respect of assets/certificates from charge to wealth tax was that assessee would have to establish that money utilized in creating the asset in the shape of purchase of certificate was received or brought into Pakistan through normal Banking channels ---Assessee having failed to establish necessary ingredient, would not be entitled to the exemption provided under sub-clause (ii) of cl. (xv) of S.5 of the Wealth Tax Act, 1963---Order of the Appellate Tribunal was upheld with modification. JUDGMENT SAIYED SAEED ASHHAD, J.--Income-tax Appellate Tribunal by its order dated 12-8-1991 in R.A. No.129/K.B of 1990-91 referred a question of law to this Court for seeking its opinion. The…

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