1978 (11) TMI 26

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....s. 27(3) of the W.T. Act, the CWT has asked for reference of the following two questions : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in allowing the assessee's claim for exemption under section 5(1)(xxvi) of the Wealth-tax Act, 1957 ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law ....

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....e provisions of sub-section (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--... (xxvi) any deposits with a banking company to which the Banking Regulation Act, 1949 (X of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) ........" The....

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....ranch of the bank at Colombo, that is, outside India, and, therefore, s. 5(1)(xxvi) of the W.T. Act, will not apply. We are unable to agree with this contention, because s. 5(1)(xxvi) does not deal with the place of the deposit, but merely refers to a deposit with a banking company to which the Banking Regulation Act, 1949, applies. It is not the case of the learned counsel for the department that....