1991 (3) TMI 6

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....nder section 2(m)(ii) of the Wealth-tax Act, 1957, without deduction of the amount of the allowance available under section 5(1A) of the said Act ?" The facts are that the assessee, Smt. Mridula Kanoria, in her wealth- tax return for the assessment year 1979-80, claimed deduction of Rs. 9,37,635. The Wealth-tax Officer allowed exemption for shares at Rs. 1,50,000 under section 5(1A) and, consequently, to that extent, he reduced the claim of liability of the assessee under section 2(m)(ii) of the Wealth-tax Act under the impression that the amount borrowed was utilised for acquiring the shares. Being aggrieved, the assessee preferred an appeal before the Appellate Assistant Commissioner. The Appellate Assistant Commissioner upheld the ....

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....al is that the cost of shares of Rs. 2,73,027 for acquiring 6,416 shares was out of the assessee's own funds and that finding has not been disputed before this court and no question has been raised on this issue. The cost of the shares is Rs. 2,73,027 and the assessee has claimed exemption of Rs. 1,50,000 which the assessee is entitled to get. It is for the assessee to choose against which shares the assessee will claim the benefit of exemption. Our attention has been drawn to a decision of this court in CIT v. Jayashree Charity Trust [1986] 159 ITR 280, where this court considered the relief available to the assessee under section 80K. There, the assessee claimed certain expenditure which qualified for exemption. In that case, the facts....

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....as open to the assessee to pay as it pleased and it was more advantageous to the assessee not to pay for charitable purposes out of the dividend income even if the dividend income and other heads of income were kept in one fund. There is no principle of law by which apportionment can be introduced. It cannot be said, as matter of fact, that the assessee must be taken to have made payments for the purposes of charity, proportionately or at all out of the dividend income. The same principle will apply to the facts of this case. It is for the assessee to choose which of the investments in shares would give him the full exemption. It is not in dispute that she had purchased the shares out of her funds which would exceed Rs. 1,50,000. Accordi....