1994 (12) TMI 29

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....e annuity policies was not an asset, the value of which was includible in the net wealth of the assessee under section 2(e) of the Wealth-tax Act, 1957 ? " This reference pertains to the assessment year 1977-78. The assessee is a professional film artiste. According to the terms of the contract with the film producer, remuneration was payable to the assessee for the services rendered by him in annual instalments of specified sums spread over a number of years. The producer took out annuity policies from the Life Insurance Corporation to secure payment of the mutually agreed amounts to the assessee in the stipulated years. Under the terms of the policy, it was agreed that the policy would not be surrendered nor could annuity payable there....

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....e,-- (1) (iv) a right to any annuity in any case where the terms and conditions relating thereto preclude the commutation of any portion thereof into a lump sum grant ;" The above definition was modified by the Finance Act of 1975 with effect from 1st April, 1975. As a result, in relation to the assessment years 1975-76 to 1992-93, the definition of " assets ", in so far as it related to exclusion of the right to annuity, stood as follows : " 2(e) ' assets ' includes property of every description, movable or immovable but does not include, 2(ii) 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) in any case where the terms and conditi....