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TMI Blog1996 (2) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... icine. As a non-resident he returned to India in May, 1979, and, therefore, for the purposes of the assessment years 1980-81 and 1981-82, he became a resident Indian. As he returned with the intention of settling for good naturally the moneys and the value of assets brought by him into India together with the value of assets acquired out of such moneys were sought to be claimed by way of an exemption under the above statutory provision. In other words, the assessee's claim that the entire wealth in India as on the date of his arrival for good was entitled to be considered for exemption. He thus filed initially a " nil " return for the assessment years 1979-80, 1980-81 and 1981-82. It is pleaded that as regards the assessment year 1979-80, the provision of section 5(1)(xxxiii) of the Wealth-tax Act would justify a claim for exemption regarding the assets acquired prior to the return of the assessee if they are out of the amounts brought into India prior to his return and this claim was rejected by the Wealth-tax Officer on the construction of the said statutory provision that the exemption was not justifiable as the assets were not acquired with the funds brought to India at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gin are required to be exempted from the rigour of the Wealth-tax Act, 1957. The Tribunal considered the position with reference to the provisions of Circular No. 411 and the text of section 5(1)(xxxiii) especially along with Explanation 2 to the said section. The Tribunal did not find any difficulty in endorsing the order of the Appellate Commissioner. The provision for exemption in the taxation laws would have to be seen as a regular feature. It appears in the relevant taxation statutes both of the Central Government as well as of the State. Apart from clause (xxxiii) of section 5(1) of the Wealth-tax Act, 1957, which we are required to consider on interpretation, illustratively even the Income-tax Act (section 10) considers items of income not to be included in the computation of the income with regard to the assessment year. Even reference to the State taxation laws, illustratively section 101 of the Kerala Municipalities Act, section 72 of the Panchayats Act as well as section 3 of the Kerala Building Tax Act, 1975. Illustratively, these provisions speak of exemption from taxation with regard to places of public worship, buildings attached thereto, choultries for which no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the context of the staring realities, keeping intact the well-known canons of interpretation in regard thereto. In the context, the terms such as " educational purpose " and " charitable purpose " have been attempted to be understood not in the restricted manner, but with an approach to know really what education means and charity is understood. The approach is illustratively seen in the decision rendered by one of us (Kamat J.) Chackravarthy Hostel v. Municipal Commissioner [1995] 2 KLT 588 in relation to the provision of exemption on the ground of educational purposes. We are required to consider the statutory provision of section 5(1)(xxxiii) of the Wealth-tax Act, 1957. It is more convenient to reproduce the text of the said provision, that part thereof which is applicable to the factual matrix and the time governing the situation. It is as follows : " In the case of an assessee, being a person of Indian origin who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch monies. To understand the provision on plain language, the assessee would have to be understood to be entitled to claim exemption on the basis of the provisions under consideration. If he qualifies himself to be an assessee and if he is able to establish that the monies and the assets in regard to which the claim is lodged have necessary inter-connection with each other these aspects would legitimately entitle him to claim exemption in regard thereto. Even though there is no difficulty to understand, it is necessary to consider and understand the meaning of the phrase " monies and the value of assets brought by him " as well as the phrase " the value of the assets acquired by him out of such monies ". With regard to these two phrases there are rival submissions with regard to the proper interpretation of the provision under consideration. Learned senior counsel strenuously submitted that the word " brought " will have to be understood to mean brought by the assessee along with him and to include the value of the assets acquired by him out of the money brought by him. It is not possible to consider the language of the section in this way. An assessee who is to be understood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ances prior to the arrival of such an assessee in India for good. If this is the position, reading the statutory provision of the clause under consideration in the light of the deeming provision, any kind of difficulties sought to be urged strenuously would immediately get dissolved and evaporated. If the second phrase posed for consideration above " the value of the assets acquired by him out of such monies ", such monies if understood by the removal of doubts, by the deeming provision referred to above in Explanation 2, the exemption sought for would also apply to the value of the assets acquired by such an assessee out of the monies remitted by him during his ordinary residence in a foreign country. The section can be considered from yet another angle. The words are " such monies ". We have to appreciate the plural sense of the word " monies " as referring to occasions more than one, when monies are brought to India. This plural use of the word " money " also goes a long way to refer to the amounts that would have to be understood as having been brought to India in the nature of remittances from time to time. Had it been the legislative intent to consider exemption with regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ution of the original clause would be of no help as there is no dispute that the assessee was governed by the statutory provision relating to exemption on the basis of what we have reproduced ad verbatim hereinbefore. The result of the above discussion would necessarily conclude that the assessee satisfied the requirements with regard to him, would be entitled to claim exemption with regard to the monies and the assets acquired from such monies and for that purpose his return to India with the intention of permanently residing therein having its relation to the monies and assets would be of no consequence if the monies and assets are inter-related with each other by a process of acquisition in regard thereto and consequently have origin in connection with the ordinary residence of such assessee in a foreign country. Equally well whether the assets are, acquired in India or in the foreign country also would have no importance in the context provided the assets are acquired out of such monies which are either brought by him or which are deemed to have been brought by him by virtue of the addition of Explanation 2. For the above reasons the question referred is answered in the neg ..... 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