COMMISSIONER OF WEALTH TAX Vs. K CHIRANJEEVI

JUDGEMENT

(1.) MR. VENKATNARAYAN, learned counsel, takes notice on behalf of the respondent.

(2.) IN pursuance to the orders of this Court in Tax Case Nos. 395 and 396 of 1997, the Income-Tax Appellate Tribunal has stated a case and referred the following question of law for our consideration:

(3.) THE respondent/assessee is a film artist. In the wealth tax proceedings relating to the assessment years 1986-87 and 1987-88, the assessee claimed exemption of an amount of Rs. 17,25,000/-, which represents the annuity policies taken in his favour by the film producers. This claim was disallowed by the Assessing Officer. Aggrieved by the said order, the assessee filed appeals before the Commissioner of Income-Tax (Appeals), who upheld the claim of the assessee. On appeal by the Revenue, the Tribunal following its earlier order in the assessee's own case with regard to the wealth tax proceedings reported in 38 ITD 313 Madras for the assessment year 1985-86, held that the entire premium payable on the policies of the assessee by the producers could not be treated as the income accruing to the assessee during the period relevant to the assessment years 1986-87 and 1987-88. It is against the said order of the Income-Tax Appellate Tribunal, at the instance of the Revenue and in pursuance of the order of this Court, the Income-Tax Appellate Tribunal has stated a case and referred the question of law referred to above.