COMMISSIONER OF WEALTH TAX Vs. SETH LALIT MODI

JUDGEMENT

(1.) AT the instance of the Revenue, the following questions are referred for the opinion of this Court :

(2.) THE aforesaid questions relate to the asst. year 1979 -80 and common questions have been referred in respect of three assessees, viz., Seth Lalit Modi, Seth Mohinder Kumar Modi and Seth Satish Kumar Modi. Since the questions involved are purely legal and are substantially concluded by the decision of this Court, we dispense with the filing of the paper -book.

(3.) AS regards question No. 2, we may refer to the decision of the Calcutta High Court in Smt. Sunanda Devi Singhania vs. CWT (1993) 204 ITR 842 (Cal) : TC 63R.326, holding that the compulsory deposit made under the Compulsory Deposit Scheme (Income -tax Payers) Act, 1974, was clearly a deposit and that the Tribunal was right in holding that such a deposit was not an annuity and was an asset. The Calcutta High Court, in a well reasoned judgment, has held that the Tribunal was justified in law in holding that the compulsory deposit should be taken into consideration for purposes of computing the net wealth of the assessee. We are entirely in agreement with the view expressed by the Calcutta High Court in the aforesaid case.