1996 (7) TMI 61

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....tance of the assessee, the Tribunal referred the following question for the opinion of this court under section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act"). "In the facts and circumstances of the case was the Income-tax Appellate Tribunal right in holding that the compulsory deposits were includible in the net wealth and that the market value should be taken to be t....

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....e assessment year 1977-78, rejected the contentions and sustained the inclusions in the net wealth. Aggrieved, the assessee filed a second appeal before the Tribunal. The Tribunal dismissed the appeal filed by the assessee, relying on the decision of the Tribunal in the case of V. M. Rao (HUF), wherein a similar issue was decided against the assessee. We have heard both learned counsel appearin....

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....as held that the "Tribunal was justified in law in holding that 'compulsory deposit' should be taken into consideration for the purpose of computing the net wealth of the assessee for the assessment years 1979-80 and 1980-81. It was further held that if the deposit is an annuity and is, therefore, not includible in the net wealth, section 7A would be rendered redundant". A similar issue also ca....

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..... Master Asutosh K. Mahadevia [1995] 215 ITR 200, the Bombay High Court took a similar view, holding that "the whole of the amount standing to the credit of the assessee in that account would, therefore, form part of his assets within the meaning of section 2(e) of the Wealth-tax Act, 1957, and the question of discounting the value thereof does not arise for purposes of inclusion in the net wealth....