9911796707
TMI Blog1987 (8) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... net wealth of the value of certain gold bonds which had matured before the valuation date. The assessee was the holder of National Defence Gold Bonds, 1980, and the dates of redemption of these bonds was the 27th October, 1980. The valuation date is 31-3-81. The assessee had not redeemed them and his contention has been that the value of the Bond is exempt from wealth-tax u/s. 5(1)(xvia). He has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore the scope of the said exemption was not extended. Accordingly he confirmed the WTO's order. 3. Before us, the assessee's counsel emphasised that as long as the Gold Bonds had not been redeemed, the assessee continued to be the holder of the Gold Bonds, and that therefore, the exemption must necessarily be available to the assessee. He then pointed out section 5(1) of the Gift-tax Act w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partmental Representative argued that the extension of the date by the Notification was merely administrative measures to avoid hardship to the Bond holders. He further pointed that the Govt. had clarified that for the purpose of capital gains the base prices of these gold was to be taken as on the maturity date which according to him showed that the assessee was regarded as the owner of the gold. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain future date called the maturity date; and during that time, the assessee has the right to interest and he can also assign the bond. Under the terms of the bond, the holder has a right to get back the gold on the maturity date whereupon the interest would cease and it would no longer be assigned. Therefore, on the maturity date, the character of this document which was the bond would chang ..... X X X X Extracts X X X X X X X X Extracts X X X X
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