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1989 (1) TMI 221 - SC - Wealth-taxWhether on the facts and in the circumstances of the case and on a proper interpretation of section 4(l)(a) of the Wealth-tax Act as amended by the Wealth-tax (Amendment) Act, (Act 46) of 1964, the sum of ₹ 1,00,011/- gifted by the assessee to her minor daughter could be included in computing her net wealth? Held that:- The rule of construction that if the statutory provision is susceptible or admits of two reasonably possible view then the one which would promote its constitutionality should be preferred on the ground that the legislature is presumed not to have intended an excess of its own jurisdiction, is subject to the further rule that it applies only where two views are reasonably possible on the statutory language. If the words of the statute, on a proper construction, can be read only in a particular way, then it cannot be read in another way by a court of construction anxious to avoid its unconstitutionality. In a case, as here, a reference arises under ‘Act’, the question of the constitutionality of the ‘Act’ cannot be examined and pronounced upon. Even if the proviso is bad for discrimination, it would follow that the converse situation brought about by the later amendment, a discrimination as between gifts made as between the 31st of March, 1972 and on 1st April, 1972 might also become bad. It is true that we are required to notice the provision as it stood at the relevant time - the question referred is answered in the negative and in favour of the revenue.
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