COMMISSIONER OF WEALTH TAX Vs. JAYALALITHA

JUDGEMENT

(1.) THE question referred to us has referred to the wrong statutory provision. THE provision with which we are really concerned with is Section 2(e)(2)(ii) of the Wealth-tax Act, 1957. That provision reads as under :

(2.) THE words in brackets in the provision were introduced by the Finance Act, 1974, with effect from April 1, 1975.

(3.) FOR these assessment years, the amount of annuity received by the assessee was treated as part of her wealth for the purpose of assessment under the Wealth-tax Act by the Wealth tax Officer. The assessee's appeals against these orders were dismissed by the Commissioner of Income-tax (Appeals). The assessee filed further appeals to the Tribunal. The Tribunal set aside the orders of the authorities below and held that the annuity payments were not includible in her net wealth for the purposes of assessment. The Tribunal also held that the annuity was the asset of the firm; that it devolved on the assessee by reason of the will of her mother ; that the assesses had not entered into any contract with the Life Insurance Corporation and that the annuities could not be regarded as assets at all.