B.P.Jeevan Reddy, C.J. - (1.) The question referred under Section 27(3) of the Wealth-tax Act, 1957, in this case roads as under : "Whether, on the facts and in the circumstances, on a correct interpretation of Section 5(1)(viii) read with Explanation 1 of the Wealth-tax Act, unstudded ornaments of precious metals fall within the purview of the term 'jewellery' or not ?"
(2.) This issue has been settled by a division Bench of this court in CWT v. Maharaja Vibhuti Narain Singh [1979] 117 ITR 246. It has been held by the Division Bench that even prior to the introduction of Explanation 1 in Clause (viii) of Sub-section (1) of Section 5 of the Wealth-tax Act, the expression "jewellery" included unstudded jewellery also.
(3.) In view of the said decision, the question referred is answered in the following words : "Unstudded ornaments made of precious metals fall within the purview of the expression 'jewellery' occurring in Section 5(1)(viii) of the Wealth-tax Act.";