Wealth Tax----

----Exemption---A person of Indian origin who was in a foreign country and who returned to India prior to introduction of S. 5(1)(xxxiii) is also entitled to exemption---Indian Wealth Tax Act, 1957, S.5(1)(xxxiii).

Section 5(1)(xxxiii) of the Wealth Tax Act, 1957, came into force from April, 1977. A person of Indian origin who was in a foreign country and returned to India even prior to April, 1977, is also entitled to exemption under section 5(1)(xxxiii). That clause was introduced with an intention of granting exemption to the moneys of an assessee of Indian origin, who had already returned to India from a foreign country and for the value of the assets brought by him into India and the value of assets acquired by him out of such moneys. The exemption so granted is for a limited number of years. The exemption is to commence from the year next following the date on which such person returned to India. In respect of persons who had returned to India prior to the introduction of the provision, the next year, in their cases, has to be regarded as the year with effect from which the provision.

For the purposes of the provisions of section 5(1)(xxxiii) it is not the date of returning to India that is material, but the bringing into India of assets and using those assets in India.

CWT v. Ram A. Joshi (Advocate) (Dr.) (1992) 196 ITR 393 (Kar.) fol.

Mrs. Chitra Venkatraman for the Commissioner.

Nemo for the Assessee.

JUDGMENT

R. JAYASIMHA BABU, J.---The Revenue contends that the exemption provided under section 5(1)(xxxiii) of the Wealth Tax Act, 1957, is available only to an assessee, who had returned to India during the previous year relevant to the assessment year. No support can be found in the language of the said section for that proposition. A person of Indian origin who was in a foreign country had returned to India prior to April, 1977, when section 5(1)(xxxiii) of -the Wealth Tax Act came into force such a person is also entitled to exemption. That clause was introduced with an intention of granting exemption to the moneys, of an assessee of Indian origin, who had already returned to India from a foreign country and for the value of the assets brought by him into India and the value of assets acquired by him out of such moneys. The exemption so granted is for a limited number of years. The exemption is to commence from the year next following the date on which person returned to India. In respect of person, who had returned to India prior to the introduction of the provision, the next year, in their case, has to be regarded as the year with effect from which the provision was introduced. The assessment years are 1977-7, 8 and 1978-79.

Similar question was decided by the Karnataka High Court in the case of CWT v. Ram A. Joshi (Advocate) (Dr.) (1992) 196 ITR 393 (Kar.). In this case, though the assessee came to India in 1972, the provision under which the exemption was sought was effective from April 1, 1977. The assessee nevertheless was entitled to the benefit of that provision. For the purposes of that provision, it is not the date of returning to India that is material, but the bringing into India of assets and using those assets in India.

We answer this question referred to us in favour of the assessee and against the Revenue.

M.B.A./4250/FCOrder accordingly.