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TMI Blog1988 (3) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1981-82 for which year the return of net wealth was filed on 30-9-1981 declaring net wealth of Rs. 10,06,418. The assessee had appended a note below the computation of wealth that the gold bonds delivery had not been taken from the Reserve Bank of India during the year and hence the gold bonds held by the assessee were not taxable under the Wealth-tax Act and, therefore, not included in the wealth. It would appear that in the accounting year relevant to the assessment year 1982-83 the assessee had credited an amount of Rs. 9,21,769 being the sale proceeds of gold received on surrendering of gold bonds. The assessee possessed National Defence Gold Bonds (series 'A' and 'B') 1980, bearing No. 102905 issued by the Reserve Bank of India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Vijaykumar Purohit, [WT Appeal Nos. 125 to 127 (Nag.) of 1985] wherein the Tribunal held that the assessees are not entitled to the benefit of section 5(1)(xvia) in respect of the gold bonds held by them after 27-10-1980. The assessees cannot escape taxation of the value of gold simply by keeping the bonds in their hands without encashing the same. The Departmental Representative relied entirely on this decision of the Tribunal in the case of Smt. Revatidevi Purohit and Vijaykumar Purohit. 5. Shri Dewani, the learned counsel for the assessees, on the other hand, argued that originally in terms of clause 2 of the National Defence Gold Bonds Scheme of 1980 the words were 'will be repaid in the form of gold of 995 fineness on 27th of Octo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the gold bond holders to encash those bond for gold. Shri Dewani then took us to the relevant provisions of the Gold (Control) Act, 1968. Section 8(1) provided that save as otherwise provided in this Act, no person shall-- (i) own or have in his possession, custody or control ; or (ii) acquire or agree to acquire the ownership, possession, custody or control of ; or (iii) buy, accept or otherwise receive or agree to buy, accept or otherwise receive, any primary gold. Section 8(6) provided that notwithstanding anything contained in this section, the Administrator may, if he is of opinion that the special circumstances of any case or class of cases so require, authorise any person or class of persons to buy or otherwise acquire, acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0023, which reads as under : "I am directed to invite your attention to two letters dated 25th April, addressed to your Bank by Mrs. Zubeda Abdullabhai and Mrs. S.Y. Ali on the above subject and to convey the permission of Gold Control Administrator as a special case under sec. 115(1) read with sec. 8(6) and 9 of the Gold Control Act, 1968 (45 of 1968) to the sale of 2337 gms. of gold held by you in safe custody on behalf of Mrs. Zubeda Abdullabhai and 5366 gms. of gold on behalf of Mrs. S.Y. Ali acquired against National Defence Gold Bonds, 1980." He argued that until such permission of Gold Control Administrator was granted as a special case under section 115(1) read with sections 8(6) and 9 of the Gold Control Act, the assessees coul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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