9911796707
|
Home
Issues:
1. Interpretation of section 5(1)(xxxiii) of the Wealth-tax Act for exemption. 2. Residence requirements for claiming exemption under section 5(1)(xxxiii). Analysis: Issue 1: Interpretation of section 5(1)(xxxiii) of the Wealth-tax Act for exemption: The case involved questions regarding the denial of the assessee's claim for exemption under section 5(1)(xxxiii) of the Wealth-tax Act. The provision exempts assets brought into India by a person of Indian origin or a citizen of India returning to India with the intention of permanently residing there. The assessee, a karta of a Hindu undivided family, had gone abroad for a year to secure possession and sell land, reinvesting the proceeds in India. The assessee claimed exemption for seven years for assets acquired in India. However, authorities rejected the claim. The court emphasized that the provision aims to benefit individuals residing abroad for an extended period before deciding to settle in India permanently. The requirement of being "ordinarily resident" in a foreign country and returning to India with the intention of permanent residence is crucial for eligibility. The court clarified that short-term stays abroad by individuals who consider India their permanent home do not qualify for the exemption. Issue 2: Residence requirements for claiming exemption under section 5(1)(xxxiii): The court analyzed the term "ordinarily resident" in a foreign country in conjunction with the requirement of intending to permanently reside in India upon return. It highlighted that the term implies long-term residence outside India, where the individual does not consider India as their permanent home. The judgment emphasized that the provision is not aimed at individuals who temporarily reside abroad but always regard India as their permanent residence. Additionally, the court clarified that a Hindu undivided family cannot be considered a "person" for the purpose of this section, as the provision specifically refers to individuals of Indian origin or citizens of India. The explanation in the provision further defines "person of Indian origin" based on birth in undivided India, which does not apply to a Hindu undivided family. Consequently, the court ruled in favor of the Revenue, denying the assessee's claim for exemption and awarding costs to the Revenue. This detailed analysis of the judgment provides insights into the court's interpretation of the statutory provisions and the key considerations for claiming exemption under section 5(1)(xxxiii) of the Wealth-tax Act.
|
