COMMISSIONER OF WEALTH-TAX Vs. YUVRAJ AMRINDER SINGH

JUDGEMENT

(1.) THIS judgment will dispose of Wealth-tax References Nos. 2, 3 and 4 of 1972. Briefly stated, the facts giving rise to these references are that Yuvraj Arnrinder Singh, who is an assessee in W. T. References Nos. 2 and 3 of 1972, and Princess Rupinder Kumari, who is an assessee in W. T. Reference No. 4 of 1972, are individual assessees. The dispute regarding the assessment of Yuvraj Amrinder Singh relates to the assessment years 1964-65 and 1965-66, for which the valuation dates, respectively, are March 31, 1964 and March 31, 1965, whereas the assessment year in the case of Princess Rupinder Kumari is 1965-66 and the valuation date is March 31, 1965. The assessees claimed exemption under Section 5 (1) (vi) of the Wealth-tax Act, 1957. The value of the annuity policy in the case of Yuvraj Amrinder Singh is Rs. 2,13,000, whereas in the case of Princess Rupinder Kumari, the value of the annuity policy is Rs. 2,35,176. The assessees claimed that the amount of the annuity policies was not assessable to wealth-tax as the same was exempt under the provisions of Section 5 (1) (vi) of the Wealth-tax Act. The Wealth-tax Officer did not allow this exemption and included the above-mentioned amounts for the above-mentioned assessment years in the assessees' net wealth. Being aggrieved, the assessees filed appeals before the Appellate Assistant Commissioner which appeals were accepted by him holding that the assessees were entitled to exemption under Section 5 (1) (vi) of the Wealth-tax Act as the annuity insurance policies were covered by the term "any policy of insurance" used in the said sub-section. The Appellate Assistant Commissioner also relied upon a decision of the Supreme Court in Chandulal Harjiwandas v. Commissioner of Income-tax, [1967] 63 I. T. R. 627 (S. C. ). The revenue having felt aggrieved against this decision of the Appellate Assistant Commissioner, then preferred appeals before the Income-tax Appellate Tribunal. The said appeals having been dismissed by the Tribunal, vide its consolidated order dated April 22, 1971, in the case of Yuvraj Amrinder Singh, and the order dated May 14, 1971, in the case of Princess Rupinder Kumari, the reference applications have been filed before the Tribunal at the instance of the revenue, on which, according to the Tribunal, the following question of law arises in the case of Yuvraj Amrinder Singh, which has been referred to us by the Tribunal for opinion:

(2.) IN the case of Princess Rupinder Kumari, the same question has been referred to us by the Tribunal for opinion though the assessment year in dispute in her case is 1965-66. The said question is in the following terms:

(3.) THE terms and conditions of the annuity insurance policy, in the case of Yuvraj Amrinder Singh and Princess Rupinder Kumari, are the same which are in the following terms: