9911796707
TMI Blog1989 (1) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... question that arose for determination before the WTO was that whether the above stock-in-trade was liable to be included in the net wealth of the assessee company for the purposes of wealth-tax in view of the provisions of s. 40(3) of the Finance Act, 1983. The assessee pleaded that they were not liable to be included. This plea was rejected by the WTO. He included them in the net wealth. The assessee filed appeal before the CWT(A). The CWT(A) confirmed the order of the WTO. The assessee has now come in appeal before us and the ground raised in the memorandum of appeal is that the CWT(A) erred in law as well as facts in confirming partly the order of the WTO and treating the stock in trade of gold, silver etc. as net wealth chargeable to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmination, therefore, is whether the stock in trade of the assessee company in the present case come within the ambit of the assets referred to in sub-s. (3) of s. 40. 5. Sub-s. (3) of s. 40 is as follows: "The asset referred to in sub-s. (2) shall be the following, namely: (i) Gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals. (ii) Precious or semiprecious stone whether or not in any furniture, utensil or other article or worked or sewn into any wearing apparel. (iii) Ornaments made of gold, silver, platinum or any other precious meals or any alloy containing one or more of such precious metals whether or not containing any precious or semi-precious stone, and whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uctive assets in closely held companies are able to successfully reduce their wealth-tax liability to a substantial extent. With a view to circumventing tax avoidance by such persons, I propose to revive the levy of wealth-tax in a limited way in the case of closely held companies. Accordingly, I am proposing the levy of Wealth Tax in the case of closely held companies at the rate of 2 per cent on the net wealth represented by the value of specified assets, such as, jewellery gold, bullion, buildings, and lands owned by such companions. Buildings used by the company as factory, godown, warehouse, hotel or office for the purposes of its business or as residential accommodation for its low-paid employees will be excluded from net wealth." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the provision is unambiguous and does not admit of two interpretations, it is not possible to rely on the speech of the Finance Minister in order to construe the plain words of the Statute. Several decisions laying down the principle of interpretation of Statutes were cited before us. One of the decision was CIT vs. National Taj Traders (1980) 14 CTR (SC) 348 : (1980) 121 ITR 535 (SC). Attention was also drawn to the observation at page 540 of that decision. Attention was also drawn to the observations at page 228 of the Maxwell on Interpretation of Statutes 12th Edition. It is not necessary to refer to those decisions and observations in this order. This is because we are satisfied that the words of s. 40(3) of the Finance Act, 1983 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of customers advance of Rs. 10,91,834 received against orders as a debt incurred in connection with taxable wealth." In the balance-sheet of the company, the amount of Rs. 10,91,834 has been shown as advances against orders. Sec. 40(2) of the Act lays down that the net wealth of the company shall be the amount by which the aggregate value of all the assets referred to in sub-s. (3) wherever allocated belonging to the company on the valuation date is in excess of the aggregate value of all the debts owned by the assessee on the valuation date which are secured on, or which have been incurred in relation to, the said asset. The WTO had not included the above amount of Rs. 10,91,834 in the computation of the debts owed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
