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TMI Blog1983 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... Office 12-Year National Defence Certificates of the value of Rs. 70,000 in the first two assessment years and Rs. 62,000 in the third assessment year. As found by the WTO, these certificates were in the joint names of the assessee and his wife and these were purchased prior to 1-3-1970. Being acquired in the names of two adults, the maximum amount permitted to be invested in such a case for the purpose of section 5(1)(xvi) of the Wealth-tax Act, 1957 ('the Act'), was Rs. 70,000 and this fact is noted in the AAC's combined order for the first two assessment years dated 12-11-1981. The assessee claimed that proviso to section 5(1A) rendered this investment to be exempt from wealth-tax in all the three assessment years. The WTO rejected the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 5(1A) and the proviso therein was quite erroneous and he held that the assessee was entitled to the exemption in respect of the investment of Rs. 70,000 in the first two years and Rs. 62,000 in the third year. The revenue has come up in appeal to the Tribunal for all the three assessment years. 3. We have heard the rival submissions. The case of the revenue was the same as is stated in detail by the WTO in his first assessment order, namely, the limit of Rs. 1,50,000 was raised as per the proviso to section 5(1A) only if the investment in the assets as mentioned in clauses (xv) and (xvi) of section 5(1) itself exceeded Rs. 1,50,000. On the other hand, the assessee's case was that the view taken by the Madras Bench of the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 and again the proviso refers that such an investment must be made prior to 1-3-1970. It is unthinkable that such an investment will be denied the exemption available to it merely because it does not exceed itself from the figure of Rs. 1,50,000. In other words, what assumed by the argument of the revenue will be that an assessee should first make an investment of more than Rs. 1,50,000, which is not permitted at all to be made by the relevant rules framed by the post office. It will, therefore, be inappropriate to hold that an assessee must invest beyond the limits prescribed for each type of investment or must make investment in more than one such type before the proviso to section 5(1A) can come into operation and that too before 1-3-19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xceeds Rs. 1,50,000, 'such limit shall be raised by the said amount'. The words italicised are clear and specific. Having fixed the ceiling limit for exemption from net wealth in respect of certain categories under section 5(1A), the proviso enacts that where the net wealth includes items under (xv) and (xvi) of section 5(1A), above the ceiling limit, held prior to March 1, 1970, the ceiling shall be raised by the amount of such excess. On the plain language of the proviso, in the contingency provided, the exemption limit shall be raised to the extent of such excess, and no more. We are not prepared, as the Tribunal was, to whittle down the plain meaning deduced from the language of these provisions by any presumed or assumed intention of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to have referred to the speech of the Finance Minister introducing the Finance Act of 1970. The view taken by the Kerala High Court in the sentence referred to above no longer seems to be in accordance with what is observed by the Supreme Court in the well known case of K.P. Varghese v. ITO [1981] 131 ITR 597. It has been observed in brief by the Supreme Court that its views were in accordance with the recent trend in juristic thought not only in western countries but also in India, that the interpretation of a statute being an exercise in the ascertainment of meaning, everything which is logically relevant should be admissible. The speech of the Finance Minister and other materials will obviously become relevant to understand the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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