9911796707
TMI Blog2004 (12) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... how the value of the assets has to be determined and cannot govern section 5 of the Act which specifies the assets which are not to be included in the net wealth of an assessee on a given valuation date. – Thus provisions of section 7 cannot govern the availability or otherwise of exemption under section 5 - there being no infirmity in the order of the Tribunal, the question referred requires to be answered in the affirmative, i.e., in favour of the assessee - - - - - Dated:- 2-12-2004 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D. A. Mehta J.- The Income-tax Appellate Tribunal, Ahmedabad Bench, "C", has referred the following question of law, at the instance of the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Wealth-tax Officer had himself allowed a similar claim in the assessee's own case for the assessment years 1978-79 and 1979-80, as per details available in the paper book filed before him. The Commissioner of Wealth-tax (Appeals), also took note of the fact that in the case of the husband of the assessee-appellant, M. K. S. Shivrajsinghji also, the Wealth-tax Officer had allowed a similar claim for the assessment years 1980-81 and 1981-82. The Commissioner of Wealth-tax (Appeals), further held that on a plain reading of section 5(1)(xxa) of the Act, the interpretation placed by the Assessing Officer did not flow, namely, that exemption under the said provision was not available to an assessee who was treated as a dealer in shares. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee concerned should be the first registered owner of the shares; even a subsequent purchaser of the qualifying shares was entitled to get exemption for the balance of the qualifying period of five years. Therefore, according to the Tribunal, the stand adopted by the Assessing Officer was not justified on a plain reading of the provisions. Mr. Manish Upadhyay for Mr. Pranav G. Desai, learned standing counsel for the applicant-Revenue, has been heard. He has placed reliance on the order of the Assessing Officer and reiterated the reasons stated in the assessment order. Though served, there is no appearance on behalf of the respondent-assessee. Section 5(1) of the Act states that wealth-tax shall not be payable by an assessee in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act, such assets are not required to be included in the net wealth of the assessee. Admittedly, in the case of the assessee, the appellate authorities have found that the shares in question are those which fulfil the description of such shares which are entitled to be excluded under clause (xxa) of section 5(1) of the Act. As noticed, the Tribunal has found that the assessee has placed on record certificates from the Income-tax Officer having jurisdiction over the companies to establish the fact that the said shares formed part of the initial issue, and as such, qualify for exemption. The Tribunal has further found on a reading of sub-section (3) of section 5 of the Act that the requirement of owning the assets specified in various cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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