Law:

Section:

Section 5, read with section 3 of the Wealth-tax Act, 1957 - Exemption - Position prior to 1-4-1993 - Assessment year 1957-58 to 1959-60 - Whether a commercial or business deposit continues to be property of assessee despite transference of possession of asset deposited and would clearly fall within charging section 3 read with definition of "net wealth" and "assets" in clauses (m) and (e) respectively of section 2 - Held, yes - Whether word "deposit" used in section 5(2) must be read in context of provisions of Act as a whole especially clause (xvi) of section 5(1) and, therefore, exemption under section 5(2) would not be in respect of private commercial deposits made by individuals with Government under business contracts or other commercial transactions entered into with Government, e.g, deposits which are liable to be returned when their purpose is served - Held, yes FACTS The assessee-company carried on the business of construction work. They had entered into a contract with the Government of India for the construction of the Port and for that purpose there was a written contract. Pursuant to terms of the contract the assessee deposited large sums with the Central Government in the shape of securities or cash. For the assessment years 1957-58 to 1959-60, the assessee claimed exemption in respect of amounts deposited with Government in the shape of securities and/or cash, in the computation of its total wealth under section 5(2). The WTO rejected this claim holding that section 5(2) would not be attracted in the case of these amounts because, although they were ostensibly deposits made by the assessee, the real nature of the deposits had to be looked at and "the real nature of the deposit made by the assessee which is in the form of securities. . . . and these securities had not been exempted by means of a notification. . .". Secondly, he held that these securities continued to be the property of the assessee and the assessee was receiving the interest accruing on the securities. The AAC reversed that decision and held in favour of the assessee. On appeal by the revenue the Tribunal reversed the decision of the AAC and held that the exemption claimed in…

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