1980 (9) TMI 147

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....wealth-tax assessment for the asst. yr. 1978-79. 2. The assessee made an investment of Rs. 25,000 in 12 year National Defence Certificates on 4th June, 1969. It was claimed that the assessee was entitled to exemption under s. 5(1)(xvi) of the WT Act, which exempts various types of Govt. securities as long as the deposits do not exceed the maximum amount permitted to be deposited therein. 12 yea....

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....vi) (not begin deposits under the Post Office Savings Bank (Cumulative Time Deposits, Rules 1959), which have been owned by the assessee continuously from a date prior to the 1st day of March, 1970, and the value of the assets so included exceeds the limit of one hundred and fifty thousand rupees by any amount, such limit shall be raised by the said amount." It was understood by the WTO that th....

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....n WTA Nos. 453 to 455/Mds/1974-75 dated 30th April, 1976, where a view canvassed by him was allegedly upheld. 4. We have carefully considered the records as well as the arguments. We do find that the investment is within the ceiling prescribed for exemption and squarely falls under s. 5(1)(xvi) of the WT Act. In fact, this is not disputed. The only further point is whether the exemption gets hi....

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....l. (xvi) and the ceiling under s. 5(1A) will not hit the assessee because of the proviso. We are unable to agree with the narrow interpretation sought to be given by the ld. Deptl. Representative to the proviso so as to say that the exemption will apply to cases of investments covered under sub-cls. (xv) and (xvi) only where the investments exceed Rs. 1.5 lakhs. This cannot obviously be a correct ....