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TMI Blog2002 (6) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the following question of law: "Whether, the amount paid as compulsory deposit under the Compulsory Deposit (Income-tax Payers) Scheme, 1974, is to be treated as exempt from wealth-tax?" In this case, the assessment years involved are the assessment years 1982-83 and 1983-84. The Wealth-tax Officer, in the course of the assessment proceedings, rejected the assessee's claim to exclude from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ternative submission made by the assessee. On the aforesaid facts, the Tribunal has referred the above question for the opinion of this court. Heard Mr. Tanvish Bhatt, the learned standing counsel, appearing for the Revenue. None appears on behalf of the respondent though the notice was served. Mr. Tanvish Bhatt, the learned standing counsel has invited our attention to the decision of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nance (No. 2) Act, 1980. By virtue of this Act, section 7A was inserted in the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974, with effect from April 1, 1975, which provides that for the purposes of exemption under section 5 of the Wealth-tax Act, 1957, the amount of compulsory deposit shall be deemed to be a deposit with a banking company to which the Banking Regulation Act, 1949, applie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of WTO v. S. D. Nargolwala [1983] 5 ITD 690. In any case, the view taken by the Tribunal does not call for any interference by this court for the reasons stated hereinabove.
We, therefore, answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue.
The reference is disposed of accordingly with no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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