SHANKERLAL GAFURBHAI PATEL vs. COMMISSIONER OF WEALTH TAX

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WTR/21/1993HC GujaratGJHC24021497199321 December 2002Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE K.M.MEHTA2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court of Gujarat, in its judgment dated 21/12/2002, answered the question of law in the affirmative, in favour of the assessee and against the revenue. This decision was based on a similar question that had been raised in Wealth Tax Reference No. 34 of 1991. The High Court had previously disposed of that reference by answering the question in favour of the assessee and against the revenue by its judgment dated 21.12.2002. Therefore, following its earlier decision, the present reference was also answered in favour of the assessee. The operative direction is that the question is answered in the affirmative. The reference stands disposed of with no order as to costs. The specific reasoning from the prior judgment is not detailed in this excerpt, but the ratio is that National Defence Gold Bonds, 1980, are eligible for exemption under Section 5(1)(xvia) of the Wealth-tax Act, 1957.

What were the facts?

This is a Wealth Tax Reference No. 21 of 1993 before the High Court of Gujarat at Ahmedabad. The reference arises from an order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C'. The assessee is Shankerlal Gafurbhai Patel, and the respondent is the Commissioner of Wealth Tax. The case concerns the assessment year(s) not explicitly stated but implied to be related to the Wealth Tax Act, 1957. The core of the dispute is whether the assessee was entitled to an exemption under Section 5(1)(xvia) of the Wealth-tax Act, 1957, concerning National Defence Gold Bonds, 1980. The procedural history indicates this is a reference to the High Court for its opinion on a question of law.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the assessee was entitled to the exemption under Section 5(1)(xvia) in respect of the National Defence Gold Bonds, 1980? (Question of law) Assessee's Contention: The assessee argued that they were entitled to the exemption under Section 5(1)(xvia) of the Wealth-tax Act, 1957, for the National Defence Gold Bonds, 1980. The judgment does not explicitly record the assessee's arguments beyond this claim for exemption. Revenue's Contention: The revenue contended that the assessee was not entitled to the exemption. The judgment does not explicitly record the revenue's arguments beyond this denial of exemption.

Which sections of the Income-tax Act were involved?

Section 27(1),Section 5(1)(xvia)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 21 of 1993

For Approval and Signature:

HON'BLE MR.JUSTICE A.R.DAVE and HON'BLE MR.JUSTICE K.M.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the concerned : NO Magistrate/Magistrates,Judge/Judges,Tribunal/Tribunals?

-------------------------------------------------------------- SHANKERLAL GAFURBHAI PATEL Versus COMMISSIONER OF WEALTH TAX -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 21 of 1993 SERVED BY RPAD - (N) for Petitioner No. 1 MR MANISH R BHATT for Respondent No. 1

--------------------------------------------------------------

CORAM : HON'BLE MR.JUSTICE A.R.DAVE and HON'BLE MR.JUSTICE K.M.MEHTA

Date of decision: 21/12/2002

ORAL JUDGEMENT (Per : HON'BLE MR.JUSTICE A.R.DAVE)

The following question of law, arising out of the order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C', has been referred to this court for its opinion under the provisions of sec. 27(1) of the Wealth-tax Act, 1957. "Whether, on the facts and in the circumstances of the case, the assessee was entitled to the exemption under sec. 5(1)(xvia) in respect of the National Defence Gold Bonds, 1980?"

2.

Similar question had been raised in Wealth Tax Reference No. 34 of 1991. This court has disposed of the said reference by answering the question in favour of the assessee and against the revenue by its judgment dated 21.12.2002. The question referred to this court in this reference is also, therefore, answered in the affirmative, i.e., in favour of the assessee and against the revenue.

The reference stands disposed of with no order as to costs.

(A.R. Dave, J.)

(K.M. Mehta, J.) (hn)

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