Commissioner of Wealth-tax vs K.M.A. Segupathumal

R. Jayasimha Babu, J.—The Revenue contends that the exemption provided u/s 5(1)(xxxiii) of the Wealth-tax Act, 1957, is available only to

an assessee, who had returned to India during the previous year relevant to the assessment year. No support can be found in the language of the

said section for that proposition. A person of Indian origin who was in a foreign country had returned to India prior to April, 1977, when Section

51(1)(xxxiii) of the Wealth-tax Act came into force such a person is also entitled to exemption. That clause was introduced with an intention of

granting exemption to the moneys of an assessee of Indian origin who had already returned to India from a foreign country and for the value of the

assets brought by him into India and the value of assets acquired by him out of such moneys. The exemption so granted is for a limited number of

years. The exemption is to commence from the year next following the date on which such person returned to India. In respect of persons, who

had returned to India prior to the introduction of the provision, the next year, in their cases, has to be regarded as the year with effect from which

the provision was introduced. The assessment years are 1977-78 and 1978-79.

Similar question was decided by the Karnataka High Court in the case of Commissioner of Wealth Tax Vs. Dr. Advocate Ram A. Joshi, . In

this case, though the assessee came to India in 1972, the provision under which the exemption was sought was effective from April 1, 1977. The

assessee nevertheless was entitled to the benefit of that provision. For the purposes of that provision, it is not the date of returning to India that is

material, but the bringing into India of assets and using those assets in India.

We answer this question referred to us in favour of the assessee and against the Revenue.