TaxTMI 
TaxTMI 
1999 (12) TMI 52
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....y Tribunal, Cochin Bench: "Whether, on the facts and in the circumstances of the case, and in view of the Tribunal's own decision in the case of Dr. V.P. Gopinathan (WTA Nos. 58, 59 & 60/Coch/1985, dt. 11th June, 1988), the assessee is entitled to exemption under s. 5(1)(xxxiii) of the WT Act, 1957?" 2. Factual position is as follows : Assessee, an individual, though a citizen of India, was resident of Kuwait for a long time. He is a partner in M/s Haji M.K. Abdul Khader & Co., a partnership firm, which runs a hotel called 'Paramount Tower' in Calicut. Valuation Officer determined fair market value of the hotel building at Rs. 86,28,000 as on 31st March, 1984, and that of plant and machinery including electrical installations at Rs. 1....
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....the position. 3. The provision at the relevant time relating to assessment year reads as follows : "5 Exemptions in respect of certain assets.---(1) Subject to the provisions of s. (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 --- (xxxiii) in the case of an assessee, being a person of Indian origin who was ordinarily residing in a foreign country and who, on leaving such country, has returned to India with the intention of permanently residing therein, moneys and the value of assets brought by him into India and the value of the assets acquired by him out of such moneys : Provided that this exemption shall apply onl....
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....and any rules made thereunder on the date of his return shall be deemed to be moneys brought by him into India on that date. This amendment was operative retrospectively from 1st April, 1977 and relatable to asst. yr. 1977-78 and subsequent years. 5. Assets etc., brought into India by persons of Indian origin or by citizens of India-s. 5(1)(xxxiii). Sec. 5(1)(xxxiii), newly inserted by the Finance Act, 1976, w.e.f. 1st April, 1977, grants exemption, for and from asst. yr. 1977-78, to an assessee, being-a person of Indian origin (as defined in Expln. 1) or a citizen of India, who was ordinarily residing in a foreign country and who, leaving such country, has returned to India with the intention of permanently residing in India. The exempt....
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....assets. 6. According to Mr. P. Balachandran, learned counsel for assessee, that three categories of assets are covered by the provisions. They are : (1) remittance made earlier to return of assessee, (2) money and value of assets brought by him into India, and (3) investments after arrival by way of acquisition and all the three categories are eligible for exemption. According to learned counsel for Revenue, on the other hand, only second and third categories are exempted. Before addition of expression "within one year immediately preceding the date of his return and at any time thereafter" and Expln. 2 which were simultaneously inserted by Finance Act, 1986, (Act 23 of 1986) w.e.f. 1st April, 1987, and 1st April, 1977, respectively, the....
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.... intention is inferable. As observed by apex Court in Hariprasad Shivshankar Shukla vs. A.D. Divelkar AIR 1957 SC 121 and Nalinikant Ambalal Mody vs. CIT AIR 1967 SC 193, legislation founded on a mistaken or erroneous assumption has not the effect of making that law which the legislature had erroneously assumed to be so. Court will disregard such a belief or assumption and also the provision inserted in that behalf or assumption. A later statute, therefore, is normally not used as an aid to construction of an earlier one. [See : Dharangadhar Chemical Works vs. Dharangadhar Municipality AIR 1985 SC 17291, However, when an earlier Act is truly ambiguous, a later Act may in certain circumatances serve as a parliamentary exposition of the forme....