TaxTMI 
TaxTMI 
1983 (5) TMI 42
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....th 5(1A) had been granted upto Rs. 1,50,000, the WTO included a sum of Rs. 20,000 as proportionate liability disallowed. The AAC gave an enhancement notice and brought to tax the entire amount of Rs. 84,234 holding that these debts being secured by shares exempt u/s 5 to the extent of Rs. 1,50,000, the provisions of s. 2(m)(ii) constrained such addition. The assessee has come up on appeal against the above. 2. The ld. counsel has taken us through the details of net wealth, exemption claimed, the details of the loans taken, etc. Sec. 2(m)(ii) does not talk of partly chargeable assets. There was no question, therefore, of proportionate disallowance. There was also no case for disallowing the entire amount as was done in the enhanced order o....
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....pany where the assessee is an individual or a Hindu undivided family;)." It is on the basis of s. 5(1)(xxiii) an exemption is sought and on the basis of s. 5(1A) that the limit of exemption is restricted to a sum of Rs. 1,50,000. There is no dispute about the facts insofar as the assessee is the holder of shares valued at Rs. 7,55,863 and has also taken the loans from Central Bank of India and Shri M.C. Thakore, relative to or partly secured on, in respect of the bank overdraft account on the shares. The details of the share-holdings included in the net wealth are as under: Name of the Company No. of shares Value per share Total . . . Rs. Shakti Insulated 3,790 178.50 6,76,515 Kohinoor 1 168.00 168 Bombay Dyeing 1 46.7....
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....rst two items. In other words, insofar as there is no disability for the assessee to exercise an option in respect of the particular asset for which exemption is claimed, the option must rest with him. We are guided to this conclusion by two important reasons. The first is whether an exemption under a tax statute should be claimed or not, should be left to the taxpayer. He cannot be compelled to avail of an exemption. If that be so, where an exemption to be claimed in respect of one particular item or other or none at all should also be within his option and discretion. Secondly, s. 5 r/w 5(1)(1A) leaves a cumulative exemption of Rs. 1,50,000 in any case. Merely because one assessee has some of the assets referred to in 5(1A) he could have ....