1982 (12) TMI 80 - AT - Wealth-tax

Summary

Issues:
1. Interpretation of Section 5(1)(xxxiii) of the Wealth-tax Act, 1957 regarding exemption for persons of Indian origin returning to India.
2. Application of the exemption provision to the assessment years 1977-78 and 1978-79.
3. Assessment of assets brought into India by the assessee and the value of assets acquired out of such moneys.
4. Discrepancy in granting exemption by the Wealth Tax Officer (WTO) and subsequent challenge by the Commissioner.

Detailed Analysis:
The judgment by the Appellate Tribunal ITAT HYDERABAD-A involved two appeals concerning the assessment years 1977-78 and 1978-79 under the Wealth-tax Act, 1957. The appeals contested the orders passed by the Commissioner under section 25(2) of the Act. The Commissioner challenged the exemption granted by the WTO to the assessee under section 5(1)(xxxiii) of the Act, arguing that the exemption was erroneously given. The Commissioner contended that the assessee, an Indian citizen returning from Australia, did not bring assets into India at the time of her return, and the exemption provision should only apply to those returning after 1-4-1976, not earlier returnees. The Commissioner directed the WTO to re-do the assessments based on this interpretation (Para 2-3).

The crux of the issue revolved around the interpretation of section 5(1)(xxxiii) of the Act, which provides exemption for persons of Indian origin returning to India with assets. The Tribunal analyzed the provision and its applicability, noting that the exemption, introduced in 1976, was to be effective from 1-4-1977. The Tribunal emphasized that the exemption applies to all individuals meeting the criteria, regardless of the date of return to India. The Tribunal highlighted that the exemption period covers seven successive assessment years, starting from the assessment year following the return. In this case, the assessee returned in 1974, making her eligible for exemption for the assessment years 1977-78 and 1978-79. The Tribunal disagreed with the Commissioner's contention that delay in bringing money into India would disqualify the assessee, as the provision does not mandate simultaneous return of assets. Therefore, the Tribunal set aside the Commissioner's order and upheld the exemption granted by the WTO (Para 5).

Ultimately, the Tribunal allowed the appeals, concluding that the WTO was correct in granting the exemption to the assessee for the relevant assessment years. The Tribunal emphasized that the provision did not impose restrictions beyond the criteria specified, and the assessee met the conditions for exemption under section 5(1)(xxxiii). As a result, the Tribunal overturned the Commissioner's decision and reinstated the orders of the WTO (Para 6).