TMI Blog1982 (3) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... e before us brought by the revenue is whether, on the facts and in the circumstances of the case, the AAC erred in holding that the sum of Rs. 87,870, constituted of provident fund and gratuity, received by the assessee is exempt under section 5 of the Wealth-tax Act, 1957 ("the Act"). For determination of this issue, the relevant facts are as under: 2. The assessee, Dr. T.R. Aggarwal, was a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dates are after the valuation, i.e., 31-3-1976, which is the relevant date for determining the net wealth of the assessee for the purpose of the Act. 4. The assessee filed a return of net wealth on 20-3-1980 declaring net wealth of Rs. 95,000 with a note that a sum of Rs. 87,870 received by him by way of general provident fund and gratuity, as noted above, is exempt from wealth-tax as it was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f an assessee, being a salaried employee, in any provident fund maintained by his employer to which the Provident Fund Act, 1925 applies or which is recognised provident fund within the meaning of clause (38) of section 2 of the Income-tax Act, 1961, is exempt. There is no dispute that this clause is applicable to the case of the assessee in case he is in regular service. The argument projected by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on 31-3-1976. Therefore, these amounts were not taxable at all. These were rightly given exemption by the AAC. His order may be upheld. 6. We have given careful considerations to the rival submissions and we are of the opinion that the decision taken by the AAC is fully justified on the facts of the case. Though the assessee retired on 29-2-1976, neither the provident fund nor the gratuity had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresents the available balance of the deposits up to 1974-75 in the GPFA/C No. Med/Pb./1606 with interest calculated thereon up to the 5/76". In other words, it includes the interest amount calculated after 31-3-1976. It is to be noted insofar as gratuity is concerned, it has to be calculated on particular formula provided and unless it is actually calculated and sanctioned it cannot be said to b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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