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TMI Blog1995 (7) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 3,32,400 (ii) Value of movable property Rs. 18,53,438 ------------- Rs. 21,85,838 Less: Exemption including exemption of one house restricted to Rs. 5,00,000 in terms of section 5(1A) of the W.T. Act, 1957 Rs. 5,00,000 ------------- Rs. 16,85,838 Less: Current year liability : (i) I.T. Rs. 1,37,340 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee :-- (IA) Nothing contained in sub-section (1) shall operate to exclude from the net wealth of the assessee any assets referred to in clauses (iv),(xv), (xvi), (xxii), (xxiii), (xxiv), (xxv), (xxva), (xxvi), (xxvii), (xxviia), (xxviib),(xxviii), (xxix), (xxxi) and (xxxii) not being deposits under the Post Office Savings Bank (Cumulative Time Deposits) Rules, 1959, to the extent the value thereof exceeds, in the aggregate, a sum of five hundred thousand rupees. (2) Wealth-tax shall not be payable by an assessee in respect of any deposit made by the assessee with the Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvited our attention to subsection (1) of section 5 of the Wealth-tax Act where a phrase has been used "wealth-tax shall not be payable " and also a further phrase"and such assets shall not be included in the net wealth of the assessee. He submitted that the two matters were separate and distinct. It was possible that assets were included in the net wealth but wealth-tax was not payable, as was evident from sub-section (2) of section 5. Here it was clearly laid down that 'wealth-tax shall not be payable' but the value'shall be included in computing the net wealth of the assessee'. It was only because of such a distinction that both the phrases had been used in subsection (1) of section 5 of the Wealth-tax Act. 7. On the other hand, sub-se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f taxing statutes was not to be adopted if it leads to discriminatory or incongruous results. He further supported the order of the CWT(A). 11. We have considered the rival submissions carefully. No doubt, two phrases have been used in sub-section (1) of section 5 of the Wealth-tax Act saying that 'wealth-tax shall not be payable' and also that "and such assets shall not be included in the net wealth". There is also a provision in sub-section (2) where certain assets would be included in the net wealth but wealth tax shall not be payable on them. In our opinion, the category of such assets included in sub-section (2) of section 5 is exhaustive and not just inclusive. It is significant that in this sub-section both phrases have been used, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble. 14. We may mention that if the distinction drawn by the learned counsel for the assessee is followed strictly, then with regard to the assets covered by sub-section (3) of section 5, wealth-tax is payable without the assets being included in the net wealth. This is an absurd result. 15. Similarly, in section 4(1)(a) of the Wealth-tax Act it is provided that certain assets will be included in the net wealth of an individual but there is no mention regarding the levy of wealth-tax. It will be an absurd proposition that these assets will be included only for rate purposes and no wealth-tax will be payable on them. 16. The decision of the Supreme Court in the case of CWS (India) Ltd. has been relied upon by both the sides. We, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds and even the structure of the sentence. This may be done by departing from the rules of grammer, by giving an unusual meaning to particular words, or by rejecting them altogether, on the ground that the Legislature could not possibly have intended what its words signify, and that the modifications made are mere corrections of careless language and really give the true meaning. Where the main object and intention of a statute are clear, it must not be reduced to a nullity by the draftsman's unskilfulness or ignorance of the law, except in a case of necessity, or the absolute intractability of the language used. Lord Reid has said that he prefers to see a mistake on the part of the draftsman in doing his revision rather than a deliberate a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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