DINESHCHANDRA GAFURBHAI PATEL vs. COMMISSIONER OF INCOME TAX
What did the High Court hold?
The High Court of Gujarat, in its judgment dated 21.12.2002, answered the question of law in favour of the assessee and against the revenue. This decision was based on a prior judgment of the same court in a similar case, Wealth Tax Reference No. 34 of 1991, which also dealt with the exemption under section 5(1)(xvia) for National Defence Gold Bonds, 1980. The court held that the assessee was entitled to the exemption. The ratio decidendi is that the National Defence Gold Bonds, 1980, are eligible for exemption under section 5(1)(xvia) of the Wealth-tax Act, 1957. The reference stands disposed of accordingly, with no order as to costs.
What were the facts?
This case involves a Wealth Tax Reference No. 43 of 1991 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, Dineshchandra Gafurbhai Patel, is challenging the Tribunal's decision regarding an exemption claim. The specific asset in question is National Defence Gold Bonds, 1980. The procedural history indicates that a similar question was raised in Wealth Tax Reference No. 34 of 1991, which this court had previously decided.
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? The assessee contends that they are entitled to the exemption under the specified section. The revenue's contentions are not explicitly recorded in the judgment. The court is asked to decide the applicability of section 5(1)(xvia) of the Wealth-tax Act, 1957, to the National Defence Gold Bonds, 1980, based on the facts and circumstances of the case.
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 43 of 1991
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?
To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?
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?
Whether it is to be circulated to the concerned : NO Magistrate/Magistrates,Judge/Judges,Tribunal/Tribunals?
-------------------------------------------------------------- DINESHCHANDRA GAFURBHAI PATEL Versus COMMISSIONER OF INCOME TAX -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 43 of 1991 MR JP SHAH 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?"
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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