COMMISSIONER OF WEALTH TAX Vs. TARABAI KANAKMAL

JUDGEMENT

(1.) A Division Bench which heard this reference under Section 27(3) of the W.T. Act, 1957, has referred the following question of law to be decided by a Full Bench :

(2.) SECTION 3 of the Act imposes the charge of wealth-tax for every assessment year on the net wealth on the corresponding valuation date. The computation of net wealth is made in accordance with SECTION 4 by including the value of assets mentioned therein on the valuation date. SECTION 5 provides for exemptions in respect of certain assets. Clause (viii) of SECTION 5(1), as originally enacted, granted exemption in respect of "furniture, household utensils, wearing apparel, provisions and other articles intended for personal or household use of the assessee". Clause (xv) of the same section, as originally enacted, exempted "jewellery" belonging to the assessee to a maximum of Rs. 25,000 "in value". In CWT v. Arundhati Balkrishna [1970] 77 ITR 505, the Supreme Court held that jewellery intended for personal use of the assessee could also be described as an article intended for personal use and came within the scope of the exemption in Clause (viii) of SECTION 5(1). It was also held that Clause (xv) of SECTION 5(1) dealt with jewellery in general, whether intended for personal use of the assessee or not. To obviate the effect of this decision, Parliament amended SECTION 5(1) by the Finance (No. 2) Act of 1971. The first material amendment made by this Act was the addition of the words "but not including jewellery" in Clause (viii) with retrospective effect from 1st April, 1963. Another material amendment was the addition of Expln. 1 to the same clause with effect from 1st April, 1972. As a result of this Act, Clause (viii) of SECTION 5(1) is to be read with effect from 1st April, 1963, as follows :

(3.) AS earlier stated by us, the Explanation having been added only with effect from 1st April, 1972, defining the word "jewellery" by an inclusive definition, we cannot use it for the assessment year prior to 1st April, 1972. A perusal of the dictionary meaning of the words "jewel" and "jewellery" will go to show that although these words in a generic sense were used to denote costly ornaments made of gold and silver, whether they were studded with precious stones or not, yet this wide meaning has become obsolete and these words are now restricted to precious stones and ornaments containing precious stones. Reference in this connection may be made to the compact edition of the Oxford English Dictionary, Vol. I, p. 1508, where the following meanings arc given of "jewel" and "jewellery" :