Wealth-tax exemption for returning Indian origin residents runs from the next assessment year, not the date of return.

A person of Indian origin who returned to India with the intention of permanently residing there could claim exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957, and the seven-year benefit was to be computed from the assessment year next following the date of return. The later commencement of the provision did not negate the prior return to India, because the relevant condition was the fact of return with the requisite intention. On that construction, the exemption was unavailable for earlier assessment years but applied to the assessment years falling within the statutory seven-year period, and the issue was answered in favour of the assessee.

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Issues: Whether the assessee was entitled to exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957, and whether the seven-year exemption period had to be computed from the date of return to India or from the assessment year next following that return.

Analysis: The exemption applies to a person of Indian origin who has returned to India with the intention of permanently residing therein, and the statutory language provides that the benefit runs for seven successive years commencing with the assessment year next following the date of return. The fact that the provision came into force later did not displace the prior factual return of the assessee to India, because the relevant condition was that the assessee had returned to India. On that construction, the assessee was not entitled to exemption for the earlier assessment years but was entitled to it for the assessment years falling within the statutory seven-year period.

Conclusion: The assessee was entitled to exemption under section 5(1)(xxxiii) of the Wealth-tax Act, 1957, and the question was answered in the affirmative in favour of the assessee and against the Revenue.

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