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TMI Blog1981 (8) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (xxv) of s. 5(1) of the Act. The value of the assets covered by cls. (xv) and (xvi) of s. 5(1) was Rs. 1,16,600, Rs. 1,27,338 and Rs. 1,28,548 for the assessment years 1971-72, 1972-73 and 1973-74, respectively. These assets were owned by the assessee from a date prior to March 1, 1970. The assessee owned shares in Indian companies valued at Rs. 3,53,522 in the assessment year 1971-72 and Rs. 3,28,134 in the assessment year 1972-73. The assessee also owned units worth Rs. 5,000 in the Unit Trust of India in the assessment years 1971-72 and 1972-73. The value of the shares held in the Indian companies and units in the Unit Trust of India for the assessment year 1973-74 is not available, but we are told that the value of Rs. 3,87,945 shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1,50,000 out of the value of the shares and units in the Unit Trust of India in each of the years under reference. The CWT on examining the records of the assessment proceedings for the assessment years under reference found that the WTO had committed an error in granting exemption in respect of the value of the assets covered by cls. (xv) and (xvi) of s. 5(1) in addition to the exemption to the extent of Rs. 1,50,000 in respect of assets other than those covered by cls. (xv) and (xvi). According to the Commissioner, sub-s. (1A) of s. 5 prescribes an overall limit of Rs. 1,50,000. This limit was raised only in cases where the value of the assets referred to in cls. (xv) and (xvi) of s. 5(1) exceeds Rs. 1,50,000. Since the value of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f sec. 5(1A) of the Wealth-tax Act ? 3. Whether the interpretation of the Tribunal of para. 58 of the memo to the Finance Bill, 1970 is correct, in spite of the fact that the memo refers to the overall limit of Rs. 1,50,000, which limit is the limit of all assets contemplated in the provisions of section 5(1A) and not merely the limit of the assets referred to in clauses (xv) and (xvi) ? 4. Whether the Tribunal was justified in ignoring the rule that the object of the proviso to section 5(1A), being in the nature of an incentive or concession, it should have been liberally construed ? 5. Whether the Tribunal was justified in not considering the rule of construction that there is no surplusage or tautology in the enactment by the Legis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore sub-s. (1A) was inserted, the value of the assets covered by cls. (xv) and (xvi) of s. 5(1) were totally exempt from payment of wealth-tax. With the insertion of cls. (xxii) and (xxv) along with other clauses, additional assets came within the exempted category. However, while adding assets within the category of exempted assets, the Legislature put a limit or a ceiling on the exemption which was to be granted in respect of such assets. Such a limit was placed by the insertion of sub-s. (1A). Sub-section (1A) makes it clear that the exemption in respect of the assets referred to in cls. (iva), (xv), (xvi), (xxii), (xxiii), (xxiv), (xxv), (xxvi), (xxvii), (xxviii) (xxix), (xxxi) and (xxxii) shall not be available to the extent, the valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sees who, relying on the provisions made for total exemption in respect of the value of such assets, had made investment in such assets, that an exception was carved out and the limit of Rs. 1,50,000 was raised in case the value of such assets which were owned by the assessees prior to March 1, 1970, exceeded Rs. 1,50,000. However, the question of raising this limit would arise only in a case where the value of the assets referred to in cls. (xv) and (xvi) exceeds Rs. 1,50,000. Where the value of such assets does not exceed Rs. 1,50,000, the question of raising the limit under the proviso to sub-s. (1A) would not arise at all. The assessee's contention is that in a case where the assessee owns assets covered by cls. (xv) and (xvi) the limit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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