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TMI Blog1987 (4) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... as right in allowing relief under section 5(1)(xxi) of the Wealth-tax Act, 1957, on the ground that in the assessee's case, the words 'after the commencement of the Act' occurring in the said section 5(1)(xxi) can only mean after the commencement of the operation of the said Act in respect of the assessee-company, namely, July 31, 1956, being the first valuation date, and not after April 1, 1957, when the said Act came into force ? " So far as the first question is concerned, counsel are agreed that in view of the judgment of this court in the assessee's own case, CIT v. Associated Cement Companies Limited [1979] 118 ITR 406, it must be held that the introduction of new kilns in the existing factories created a new industrial undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee -... (xxi) that portion of the net wealth of a company established with the object of carrying on an industrial undertaking in India within the meaning of the Explanation to clause (d) of section 45, as is employed by it in a new and separate unit set up after the commencement of this Act by way of substantial expansion of its undertaking: ...... Provided further that this exemption shall apply to any such company only for a period of five successive assessment years commencing with the assessment year next following the date on which the company commences operations for the establishment of such unit. " It will be seen that section 5(1)(xxi) of the Wealth-tax Act, 1957, applies only if the new and separate unit has been se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act, 1957), came into force on April 1, 1957, the financial year 1957-58 was the first assessment year for which tax became chargeable, and, consequently, for the purposes of the second proviso to section 5(1)(xxi), the assessment year following the commencement of operations for establishment of the unit in the case of any company which commenced the operations any time before the 1st day of April 1957, will be the assessment year 1957-58. Prior to the year 1957-58, there was no assessment year as defined under the Act and, consequently, the first assessment year for which exemption could be claimed was this assessment year 1957-58. " This judgment of the Supreme Court is, therefore, not an authority for the proposition that the words ..... X X X X Extracts X X X X X X X X Extracts X X X X
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