DHANSUKHLAL GAFURBHAI PATE vs. COMMISSIONER OF INCOME TAX

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WTR/30/1991HC GujaratGJHC24013700199121 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, while disposing of Wealth Tax Reference No. 30 of 1991, answered the question of law in the affirmative, in favour of the assessee and against the revenue. This decision was based on the Court's prior judgment dated 21.12.2002, which disposed of a similar question in Wealth Tax Reference No. 34 of 1991. The reasoning for the affirmative answer is that the assessee was indeed entitled to the exemption under Section 5(1)(xvia) of the Wealth-tax Act, 1957, in respect of the National Defence Gold Bonds, 1980. The ratio decidendi is that such bonds qualify for the specified exemption. The operative direction is that the reference is disposed of with the question answered in favour of the assessee. No issue was expressly left undecided.

What were the facts?

This case involves a Wealth Tax Reference No. 30 of 1991 before the High Court of Gujarat at Ahmedabad. The assessee, Dhansukhlal Gafurbhai Patel, is challenging an order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C'. The reference arises from the Tribunal's order concerning the assessment year(s) not explicitly stated in the provided text. The core of the dispute revolves around the assessee's entitlement to an exemption under Section 5(1)(xvia) of the Wealth-tax Act, 1957, specifically in relation to 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?

The Tribunal had to decide the following question of law: 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 contended 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 revenue's contentions are not explicitly recorded in the provided text. However, the fact that the question was referred to the High Court implies a disagreement between the assessee and the revenue, with the Tribunal's order being the subject of challenge. The judgment mentions a similar question raised in Wealth Tax Reference No. 34 of 1991, which was decided in favour of the assessee.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 30 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?

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?

-------------------------------------------------------------- DHANSUKHLAL GAFURBHAI PATE Versus COMMISSIONER OF INCOME TAX -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 30 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?"

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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