COMMISSIONER OF WEALTH TAX Vs. DALCHAND JAIN

JUDGEMENT

(1.) THIS is a reference at the instance of the CIT made by the Tribunal under S. 27(1) of the WT Act, 1957 ('the Act'). The following question of law has been referred for answer by this Court which reads as under :

(2.) BRIEF facts given rise to this reference are that the assessee had claimed that payment made under the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 was exempted in the light of the provisions of S. 2(e)(2)(ii) of the Act, this fixed amount was added by the WTO to the asset of the assessee. It was contended by the assessee that it is not includible to the asset and, secondly, it was contended that these assets are exempted under the definition of the word 'asset' in S. 2(e) (2)(ii) and in that connection the assessee had relied upon the decision of the Tribunal reported in WTO vs. S.D. Nargolwala (1983) 5 ITD 690 (Del). On appeal by the assessee, the CIT (A) accepted the contention of the assessee relying on the decision of the Tribunal and exempted the amount of deposit from the assets of the assessee. The matter was brought by way of appeal before the Tribunal at the instance of the Revenue and the Tribunal confirmed the order of the CIT (A) as he had followed the Delhi Bench decision of the Tribunal and the appeal of the Revenue was dismissed. Thereafter the Revenue approached for referring this question of law before this Court. Hence, the Tribunal referred the aforesaid question for answer by this Court.

(3.) THE word 'asset' has been defined under the Act in S. 2(e) relevant portion of which, reads as under :