9911796707
TMI Blog1995 (1) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ions are not adverted to by the Tribunal at all, we propose to remit the matter back to it for a re-hearing and disposal in accordance with law and if still there is any occasion for a question to be referred to this court, to do so in accordance with law. The assessee, a Hindu undivided family, has been making compulsory deposits under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, read with the Compulsory Deposit (Income-tax Payers) Scheme, 1974. The valuation date under the Wealth-tax Act for the assessment year 1977-78 is September 30, 1976. The aggregate of the compulsory deposit made as on the valuation date amounted to Rs. 30,971. The assessee has claimed that the deposit is not includible in the computation of net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax the compulsory deposit scheme is created under the Act. The larger contention aside, however, we have found in the instant case that the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, has been amended by the Finance Act (44 of 1980), and its operation is made retroactive with effect from April 1, 1975, and as a consequence of the amendment, section 7A is introduced therein which provides as follows : "7A Compulsory deposit to be exempt for purposes of wealth-tax.--For the purpose of exemption under section 5 of the Wealth-tax Act, 1957 (27 of 1957), the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies." We have seen two rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upees by any amount, such limit shall be raised by the said amount : Provided further, that nothing contained in this sub-section shall apply to any assets referred to in clause (xvie) which are sold by a public sector company before the June 1, 1988 : Provided also, that where the value of any assets, being deposits referred to in clause (xxva), has not been excluded from the net wealth of the assessee under the foregoing provisions of this sub-section, so much of the value of such assets as has not been so excluded shall be excluded from the net wealth of the assessee; so, however, that the value of the assets so excluded under this proviso shall not exceed twenty-five thousand rupees.' Explanation.--Where a debt is secured on, or h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te Bank of India ; and (iii) an office or branch of a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970). Obviously all deposit offices mentioned therein were/ are not governed by the Banking Regulation Act, 1949. In the absence of the amendment aforementioned there could be a deposit in a bank to which the Banking Regulation Act applies as well as to a bank to which the Banking Regulation Act did not apply. The amendment has removed the anomaly and has made all deposits equal for the purposes of clause (xxvi) of sub-section (1) of section 5 of the Wealth-tax Act. Since section 7A is retrospective in operation it has to be applied to the deposits by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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