V M RAO Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THE question under reference, "in the facts and circumstances of the case was the Income -tax Appellate Tribunal right in holding that the compulsory deposits were includible in the net wealth and that the market value should be taken to be the face value?" needs to be answered, in our opinion, only after a fresh determination of the relevant contentions of the parties which appear to arise on the facts of the case and since such contentions are not adverted to by the Tribunal at all, we propose to remit the matter back to it for a re -hearing and disposal in accordance with law and if still there is any occasion for a question to be referred to this court, to do so in accordance with law The assessee, a Hindu undivided family, has been making compulsory deposits under the Compulsory Deposit Scheme (Income -tax Payers) Act, 1974, read with the Compulsory Deposit (Income -tax Payers) Scheme, 1974.

(2.) THE valuation date under the Wealth -tax Act for the assessment year 1977 -78 is September 30, 1976. The aggregate of the compulsory deposit made as on the valuation date amounted to Rs. 30, 971. The assessee has claimed that the deposit is not includible in the computation of net wealth and submitted its wealth -tax return accordingly. The Wealth -tax Officer has, however, included the deposit in computing the net wealth. On appeal before the Appellate Assistant Commissioner the order of the Wealth -tax Officer is affirmed. The Tribunal also has affirmed the said order.

(3.) PROVIDED further, that nothing contained in this sub -section shall apply to any assets referred to in clause (xvie) which are sold by a public sector company before the June 1, 1988. Provided also, that where the value of any assets, being deposits referred to in clause (xxva), has not been excluded from the net wealth of the assessee under the foregoing provisions of this sub -section, so much of the value of such assets as has not been so excluded shall be excluded from the net wealth of the assessee so, however, that the value of the assets so excluded under this proviso shall not exceed twenty -five thousand rupees.'