9911796707
TMI Blog1986 (3) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... 5(1)(xviia) of the Wealth-tax Act, 1957 ('the Act'). 2. The assessees are inter-related HUFs having shares in certain coffee estates. The kartas of the assessees' families had made contributions to the public provident fund. It was claimed that such contributions were exempt from wealth-tax under section 5(1)(xiia). While the WTO simply ignored the claim the AAC rejected the claim by pointing ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set out the relevant provisions of the statute : "5. Exemption in respect of certain assets. - (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- (i) to (xvii) ** ** ** (xviia) the amount standing to the credit of an individual in any provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provident fund is exempt only if the assessee is a salaried employee. In contrast, in the present clause (xviia) there are no words classifying the assessee for being eligible for exemption. The words merely describe the amount which is eligible for exemption as the amounts standing to the credit of an individual. In this context we have to appreciate that under the public Provident Funds Scheme, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether individual in that entry would also include an HUF for which position also there is ample authority of the Supreme Court in the case of WTO v. C. K. Mammed Kayi [1981] 129 ITR 307where it was.held that the word 'individual' occurring in the Act does include a group of assessees. In the circumstances, we accept the claim of the assessee for exemption under section 5(1)(xviia) and we direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
