JUDGMENT

VENKATACHALIAH, J. : —Civil Appeal No. 1118/NT/1975, by special leave, by the Commissioner of Wealth-tax, Andhra Pradesh, and CA Nos. 1226 & 1227/NT/ 1975, on a certificate, under See. 29[1] of the Wealth-tax Act, 1957, [Act] by the assessee raise a question as to the proper construction of the proviso to Sec. 4[1] of the Act, which provides for exemption respecting transferred assets which would otherwise be includible in the wealth of the assessee under See. 4 [1] [a] of the Act.

The condition for the grant of the exemption under the proviso is that the transfer of the asset is either chargeable to gift tax or is not chargeable under Sec. 5 of the Gift tax Act, 1958. The particular point for consideration is whether, on the language of the proviso, the exemption is attracted only to such gifts as were chargeable to tax for any assessment year commencing "after the 31st day of March, 1964," as understood by the Revenue or whether the gifts even made earlier would attract the benefit of the exemption as claimed by the assessees.

2. There appears a divergence of judicial opinion on the point in the High Courts. In C. W. T. v. Smt. Sarala Debi 101 ITR 488, T Saraswathi Achi v.