2003 (1) TMI 78

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....ndent/assessee was a non-resident Indian, who returned to India for permanent settlement on May 2, 1985. While returning to India, he had brought a Mercedes Benz car and claimed the value of the same as exempt under section 5(1)(xxxiii) of the Wealth-tax Act. This claim was allowed up to the assessment year 1988-89. During the previous year relevant to the assessment year 1989-90, the assessee sold the car for Rs. 4,50,000 and the sale proceeds were invested in movable properties and claimed exemption under section 5(1)(xxxiii) on the amount of Rs. 4,50,000. The Assessing Officer dis allowed the exemption holding that under section 5(l)(xxxiii) exemption is available only for moneys and the value of assets brought into India and the value o....

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....d under section 5(1)(xxxiii) of the Act. Though notice was served on the respondent/assessee, nobody entered appearance. In order to appreciate the correctness of the contentions raised by learned senior Central Government standing counsel, it is necessary to refer to the provisions of section 5(1)(xxxiii) of the Act. Section 5(1) of the Act provides that subject to the provisions of sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee. Clause (xxxiii) of sub-section (1) of section 5, without the Explanations, reads as follows: "(xxxiii) in the case of an assessee, being a person of Indian origin or a citizen of I....

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....this clause will not be available once the asset brought from abroad is converted into money. The contention of senior counsel is that if the legislative intention was to grant exemption even in respect of the sale consideration of the assets brought from abroad, it should have been specifically stated so in the section itself. He drew inspiration for this submission in view of the provision that the "value of the asset acquired by him out of such moneys" used in the said section. According to him, this refers to the acquisition of assets with the moneys brought by the assessee from abroad. In other words, clause (xxxiii) does not permit grant of exemption when the assets brought from abroad are converted into money or in any other form. ....