9911796707
TMI Blog1982 (4) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1978-79, only. The dispute relates to includibility of sums of Rs. 11,840, Rs. 39,453 and Rs. 52,335 respectively, for the three years. 3. Under the provisions of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 ('the CDS Act'), the assessee had been from year to year depositing certain amounts by way of compulsory deposits. Accordingly, during the financial year 1977-78, the assessee freshly deposited sum totalling Rs. 11,840. Balance standing to assessee's credit in the CDS account is not known. Presumably, the WTO allowed benefit of exemption under section 5(1) of the Wealth-tax Act, 1957 ('the Act') as regards the remaining portion of the said balance. For the assessment year 1978-79 the WTO held the said fresh de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment years 1979-80 and 1980-81, however, the learned AAC, relying on the Tribunal's common decision dated 11-6-1979 in the assessee's own case for the assessment years 1976-77 and 1977-78 turned down the aforesaid contention of the assessee and confirmed the WTO's finding. 6. It is under these circumstances that the revenue is in appeal as for the assessment year 1978-79 and the assessee is in appeal for the other two assessment years. 7. Learned departmental representative was asked as to which of the tests or ingredients, spelt out by the Supreme Court in CWT v. P.K. Banerjee [1980] 125 ITR 641 (cited by the assessee before us), could be said to have not been satisfied in the instant cases. We fear that no neat reply forthcame. Revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Finance (No. 2) Act, 1980 with retrospective effect from1-4-1975. But the assessee contended that the said new provision contained a legal fiction which did not, in any manner, impinge on the aforesaid two contentions of the assessee. 9. As suggested on the assessee's side, we first proceed to deal with the matter as if there existed no earlier judgment of the Tribunal adverse to the assessee. 10. In connection with the plea that the assessee on making fresh deposits under section 4(1) of the CDS Act, ceased to own any property whatsoever, the assessee argued that he was not at liberty to withdraw and/or utilise any portion of the amount so deposited during the said financial year 1977-78. We reject the said argument as of no weight. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious that in the instant case, component by way of interest is directly relatable to the amount of initial deposits. Second component, on the other hand, involves nothing more than repayment of the initial deposits, repayment being spread over five years commencing from two years after the expiry of the year in which the initial deposits are made. We, therefore, have no hesitation in concluding that the statutory right in question is not a right to an annuity. Even if for arguments sake, it were to be held that the said statutory right is right to annuity, assessee's case would, in our opinion, be hit by the exception that such annuity should not have been purchased by the assessee. We are of the view that even when the assessee does not pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see being allowed the benefit of exemption if the property, in respect of such exemption is intended to be allowed, is not an asset at all. 13. In the above view of the matter, we respectfully reaffirm the conclusion of the Tribunal which decided the assessee's case for earlier years. The assessee fails. In view of ceiling of Rs. 1,50,000 as fixed in section 5(1A), the assessee did not press for benefit under section 5(1) on regards the assessment years 1979-80 and 1980-81. An appeal relating to the assessment year 1978-79 involves an additional dispute. The assessee owned, on the relevant valuation date, two cars, whose written down value amounted to Rs. 47,127. The said value was included by the WTO in the computation of assessee's net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of almost deleting from the said provision the expression 'intended for the personal or household use of the assessee'. We cannot, therefore, sustain the AAC's finding. 16. During argument, the assessee also submitted that for the immediately preceding year and also for the two succeeding years, cars owned by the assessee had been held to be exempt under clause (viii) by the WTO himself. There are two aspects. Learned departmental representative did not have the WTO's folder relating to those other assessment years and the assessee produced no evidentiary material to substantiate the said factual aspect. Further, it is not known as to whether in those three years, the assessee had or had not claimed and been allowed depreciation in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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