Law:

Section:

Section 5 of the Wealth-tax Act, 1957 - Exemptions - Position prior to 1-4-1993 - Assessment year 1984-85 - Assessee was engaged in film production - Assessing Officer added value of assessee's right in films produced by him while computing his wealth-tax - Tribunal deleted addition on ground that value of assessee's right in film was in nature of copyright exempt under section 5(1)(v) - Whether Tribunal was justified in holding so - Held, yes P.S. Sahadevan for the Applicant. S.N. Inamdar and Mrs. N.G. Menon for the Respondent. JUDGMENT F.I. Rebello, J. - In both these reference as there is common question, they are being answered by this common order. 2. The Tribunal has referred the following question. (i)Whether on the facts and circumstances of the case and in law, the Tribunal was right in deleting addition of Rs. 2,28,62,000 representing the value of assessee's rights in the films produced by him, by holding that, that right was in the nature of copyright exempt under section 5(1)(v) of the Wealth-tax Act? 3. We have heard the learned counsel. We are concerned with the assessment year 1984-85 [of the Wealth-tax Act, 1957] (hereinafter referred to as "Wealth-tax Act"). Section 5(1) and (v) [read] as under. "Exemptions in respect of certain assets.-(1) Wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee- (v)the rights under any patent or copyright belonging to the assessee : Provided that they are not held by him as assets of a business, profession or vocation and no income or benefit accrues to him therefrom." 4. The Taxation Laws (Amendment) Act, 1975 came into force from 1-4-1976. By virtue of section 83 proviso to clause (v) was substituted by the following proviso. "Provided that they are held by him in his own right as the inventor or author of such patent or copyright, as the case may be, and have not been assigned to, or acquired by, him under a contract or by way of inheritance or otherwise." This position continued till it was deleted from 1-4-1976 by Finance Act, 1992. 5. In the instance case,…

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