Wealth-tax Act, 1957-Exemption under section 5(1)(xxa) ofWealth-tax Act, 1957 - Income Tax - 490/1987

Wealth-tax Act, 1957-Exemption under section 5(1)(xxa) ofWealth-tax Act, 1957 Circular No. 490 Dated 22/6/1987 To All Commissioners of Income-tax. Sir, Subject: Wealth-tax Act, 1957-Exemption under section 5(1)(xxa) of Wealth-tax Act, 1957. Certain companies have brought to the notice of the Board that various assessing/appellate authorities insist on the production of a certificate from the Board through the company in order to get exemptions under section 5(1)(xxa) of the Wealth-tax Act, 1957. 2. In this regard, your attention is invited to the Board's Circular No. 69 of 18th November, 1971 (F. No. 1/10/68-WT) 83 ITR (St.) 15 (copy enclosed) which sets out a procedure whereby the company applies and the Tax Officer issues necessary certificate for purpose of obtaining exemption under section 5(1)(xx) of the Wealth-tax Act, 1957. The Board has examined the matter and has decided that the concerned company should apply to the assessing authority in the form as per annexure "X" in case it desires an exemption under section 5(1)(xxa) for issue of equity shares of the nature specified in that clause. The form in which the certificate would be issued by the Income-tax Officer/Wealth-tax Officer to the company is specified as per enclosed annexure "Y". 3. The contents of this circular may be brought to the notice of all officers working in your charge. Yours faithfully, (Sd.) A.K. Fotedar, Under Secretary, Central Board of Direct Taxes.