2002 (8) TMI 29

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....stion referred to us for consideration under section 27(1) of the Wealth-tax Act, 1957, is as to whether the Tribunal was right in holding that the value of annuities purchased by the assessee from the Life Insurance Corporation in respect of remuneration received by him from different producers by paying a single premium insurance is includible in the net wealth of the assessee? The assessee i....

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....2(e)(2)(ii) of the Wealth-tax Act, which refers to a right to annuity is inapplicable, as the purchase of the annuity though not by the assessee was pursuant to the contract with the assessee. Section 2(e)(2)(ii) of the Wealth-tax Act refers to a right to any annuity (not being an annuity purchased by the assessee or purchased by any other person in pursuance of a contract with the assessee) purch....

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....erest of the assessee in any policy of insurance before the monies covered by the policies become due and payable to the assessee: Provided that in the case of a policy of insurance the premium or other payment whereon is payable during a period of less than ten years, the amount that shall not be included in the net wealth of the assessee under this clause shall be a sum that bears to the valu....

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....n 'any policy of insurance' used in the main sub-clause which, as indicated earlier, is of very wide import covering all types of insurance policies like life, marine, fire etc." The words which had been underlined by the apex court were "premium or other payment thereon is payable during a period of less than ten years". The court further held "in our view, the proper way to read the proviso woul....