TMI Blog1998 (2) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Tribunal was right in allowing exemption on Rs. 23,955 being the value of the units in the Unit Trust of India even though they were not held by the assessee for the period of six months as on the valuation date for the assessment year 1977-78 ?" Though Mr. C. V. Rajan, learned counsel for the Revenue, fairly stated that the assessee is no more and time should be granted to take steps to bring the legal representatives on record, yet, in our opinion, this tax case is of the year 1984 and, therefore, it is not necessary for us to wait for the Revenue to take steps and, therefore, we dispose of the tax case reference. V. Namby, the assessee herein, was assessed to wealth-tax for the assessment year 1977-78. He was a holder of uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Wealth-tax Act is a special enactment and the assessee can claim exemption only if the assessee is able to satisfy the conditions prescribed under the Act and since the assessee has not complied with the conditions for claiming exemption under section 5(3) of the Act, the Tribunal was not correct in holding that the assessee would be entitled to exemption under section 5(3) of the Act. We have carefully considered the submissions of learned counsel for the Revenue. There is no dispute on the proposition of law put forth by learned counsel for the Revenue that to claim exemption under the provisions of the Wealth-tax Act, the assessee must satisfy the conditions laid down or prescribed in section 5(3) of the Act. One such condition for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 'Fax Act, 1963, the Companies (Profits) Surtax Act, 1964 (VII of 1964), or in any other enactment, for the time being in force relating to income-tax, super-tax or super profits tax. surtax or any other tax on income, profits or gains.---... (ba) in the case of in assessee, being an individual or a Hindu undivided family, wealth-tax shall not be payable by the assessee in respect of, and there shall not be included in, the net wealth of the assessee computed under the Wealth-tax Act, 1957, so much of the assets in the form of units not being assets referred to in clause (bb) as have not been excluded from the net wealth of the assessee under section 5 of that Act ; so, however, that the value of the assets excluded under this clause sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e have already held that section 32 of the Unit Trust of India Act has an overriding effect and since section 32 of the Unit Trust of India Act overrides the provisions of section 5(3) of the Wealth-tax Act, the assessee is entitled to exemption in respect of the units held by the assessee to the extent of Rs. 25,000, notwithstanding anything contrary contained in the Wealth-tax Act and notwithstanding the fact that the assessee was holding the units for a period of less than six months prior to the relevant valuation date. We are of the opinion that the Tribunal was correct in its conclusion in holding that the assessee was entitled to exemption under the provisions of section 32 of the Unit Trust of India Act and there is no infirmity in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
