COMMISSIONER OF WEALTH TAX Vs. APPANNA C P

JUDGEMENT

(1.) IN respect of the assessment year 1982-83, the following question has been referred for our consideration under section 27(1) of the Wealth-tax Act, 1957 :

(2.) THE question is referred at the instance of the Revenue, because, its claim was negatived by the Appellate Tribunal. A sum of Rs. 1,50,000 was standing in the name of a member of a Hindu undivided family in the provident fund account. While computing the assessable wealth of the Hindu undivided family, this sum was sought to be excluded under section 5(1)(xviia) of the Wealth-tax Act by the assessee. This claim was not accepted by the Wealth-tax Officer on the ground that the language of the clause did not permit such exclusion; clause (xviia) specifically refers only the "individual".

(3.) IT was argued that some clauses simply referred to the term "assessee," in which case, all the three categories will be covered : some of the clauses refer to "individual" and such clauses would govern the case of the assessee who is an individual; some of the clauses refer to "individual" and "Hindu undivided family," in which case, such a clauses would govern the case of an individual or Hindu undivided family as the case may be and there are a few clauses which do not refer to the assessee in any manner but just refer to the nature of the assets and such assets would be excluded under section 5(1) irrespective of the status of the assessee as individual, Hindu undivided family or company. Since clause (xviia) specifically governs the case of an individual, it is contended that he benefit of the said clause cannot be extended to the case of the Hindu undivided family, even though the provident fund was actually created by the contribution made by the Hindu undivided family. Mr. Hemaraj, learned counsel for the assessee, relied on the opening clauses of section 5(1) and contended that the exclusion is in respect of the enumerated assets. In other words, if a particular asset belongs to an assessee, the said asset will have to be excluded in case such an asset falls within the purview of any of the clauses enumerated under section 5(1).