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Issues:
Interpretation of provisions under sections 5(1)(xx), 5(1)(xxiii), and 5(1A) of the Wealth Tax Act, 1957 regarding exemption on share holdings for assessment years 1973-74 and 1974-75. Analysis: The case involved multiple assessees appealing against the denial of exemption on their share holdings by the WTO for assessment years 1973-74 and 1974-75 under sections 5(1)(xx) and 5(1)(xxiii) of the Wealth Tax Act, 1957. The assessees argued that their shares in two companies should be exempt under section 5(1)(xxiii) even though they had previously enjoyed exemption under section 5(1)(xx) until the assessment year 1972-73. The AAC rejected this argument, stating that the monetary limit of Rs. 1,50,000 in section 5(1A) applied only to clause (xxiii) and not to clause (xx). Upon hearing the parties, the ITAT Madras-D found merit in the assessees' contention. The Tribunal analyzed the provisions of sections 5(1)(xx), 5(1)(xxiii), and 5(1A) to determine the eligibility for exemption. The ITAT noted that section 5(1)(xx) provided for total exemption of equity shares for a specific period, while section 5(1)(xxiii) introduced a monetary limit of Rs. 1,50,000 for certain assets. The Tribunal considered the legislative intent behind the amendments and the assessees' compliance with the conditions stipulated in section 5(1)(xxiii). The ITAT rejected the department's argument that sections 5(1)(xx) and 5(1)(xxiii) were mutually exclusive. The Tribunal emphasized that in case of multiple interpretations, the one favoring the assessee should be adopted, citing the Supreme Court decision in CIT vs. Vegetable Products Ltd. The ITAT concluded that the assessees were entitled to exemption under section 5(1)(xxiii) read with section 5(1A) for the relevant assessment years. Consequently, the appeals of the assessees were allowed, granting them relief in respect of their share holdings for the specified assessment years.
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