9911796707
TMI Blog1990 (11) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... al was justified in law in holding that the value of factory shed and factory office building cannot be deducted to the extent of Rs. 2,49,021 and Rs. 31,023 respectively, from the total assets of the firm while allowing exemption under section 5(1) (xxxii) of the Wealth-tax Act, 1957, in the case of the assessee relating to the assessment year 1974-75 ?" Tax Cases Nos. 98 of 1984, 99 of 1984 and 100 of 1984 relate to the assessment years 1975-76, 1977-78 and 1978-79 respectively. These cases arise out of a common statement of case drawn up by the Tribunal referring the following question of law to this court for its opinion : "Whether the exemption mentioned under section 5(1)(xxxii) of the Wealth-tax Act, 1957, extended to the land an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e which reads as under: "5(1). Subject to the provisions of sub-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 ... (xxxii) the value, as determined in the prescribed manner of the interest of the assessee in the assets (not being any land or building or any rights in any land or building or any asset referred to in any other clause of this sub-section) forming part of an industrial undertaking belonging to a firm or an association of persons of which the assessee is a partner, or, as the case may be, a member ; . . . . " Undisputedly, the assessee is entitled to some exemption in respect of the value of his intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a taxing statute by employing intricate rules of interpretation and, in any view of the matter, if two views are possible, then one which favours the assessee should be accepted. It was further submitted that the phrase "referred to in any other clause of this section" also qualifies the expression "any land or building, etc." Therefore, as per the submission, the value of the interest of the assessee in land and building of the undertaking can be excluded from exemption under this clause only if an exemption in respect thereof has been availed of in any other clause of section 5(1) which is not the case here. In my view, the approach of the assessee is more in accordance with the rule of interpretation applicable to an exemption claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. These cannot be used as a tool by the Revenue to curtail the ambit of the exemption which is otherwise available to the assessee on a slightly liberal construction. It has been said by the Supreme Court that : "It is true that as a general rule Parliament may be presumed not to make a superfluous Legislation. The presumption is not a strong presumption and statutes are full of provisions introduced because abundans cautela non nocet (there is no harm in being cautious)." (See Gokaraju Rangaraju v. State of A. P., AIR 1981 SC 1473, at page 1479). Now coming to the submission of the Revenue seeking application of rule of interpretation based on the maxim expressio unius, I may observe that keeping in view the basic rules of interpretat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
