N.M.KASLIWAL, J. - (1.) AN identical question of law has been referred under section 27(1) of the Wealth -tax Act, 1957, in all the above -mentioned reference applications and, as such, the same are disposed of by one single order. The Income -tax Appellate Tribunal, Jaipur Bench, has referred the following question of law for the opinion of this court : 'Whether the Tribunal was right in holding that by virtue of the Finance (No. 2) Act of 1971, the term jewellery occurring in the words but not including jewellery inserted retrospectively with effect from April 1, 1963, after the words articles intended for personal and household use of the assessee in clause (viii) to section 5(1) of the Wealth -tax Act, 1957, did not include ornaments made of gold, silver, platinum or any precious or semi -precious stone, and that such ornaments are includible in the term jewellery alter March, 1972.'
(2.) IN order to appreciate the controversy raised in these cases, it would be necessary to give a legislative history of the relevant provisions. The Wealth -tax Act, 1957 (hereinafter referred to as 'the Act'), came into operation from April 1, 1957. Under the aforesaid Act, net wealth exceeding particular limits belonging to an individual, Hindu undivided family or company became chargeable to wealth -tax. Section 5 of the Act provided exemptions in respect of certain assets. Sub -section (1), clauses (viii) and (xv) of that section, which are relevant for the purpose of these cases, are reproduced as under : 'Clause (viii). furniture, household utensils, wearing apparel, provisions and other articles intended for the personal or household use of the assessee.' Clause (xv). jewellery belonging to the assessee, subject to a maximum of twenty -five thousand rupees in value.' This clause(xv) was subsequently deleted by the Finance Act, 1963. In CWT v. Arundhati Balkrishna : [1970]77ITR505(SC) , their Lordships of the Supreme Court, while considering the assessment for the years 1957 -58 and 1958 -59, held that jewellery is widely used as articles of personal use by the ladies in this country especially by those belonging to the richer classes. That being so, jewellery intended for the personal use of the assessee comes within the scope of section 5(1)(viii) of the Act. But the jewellery mentioned in section 5(1)(xv) of the Act need not be articles intended for the personal use of the assessee. That provision deals with jewellery in general. The two provisions deal with different classes of jewellery. That is made further clear by section 5(1)(xiii) which says that wealth -tax shall not be payable by an assessee in respect of any drawings, paintings, photographs, prints and other heirloom and not falling within clause (xii) and not intended for sale but not including jewellery. It was further held that under section 5(1)(xv) as it stood at the relevant time, every assessee was entitled to deduct a sum of Rs. 25,000 from out of the value of the jewellery in her possession whether the same was intended for her personal use or not but under section 5(1)(viii), the value of all the jewellery intended for the personal use of the assessee stands excluded in the computation of the net wealth of an assessee.
(3.) AFTER the above decision of the Supreme Court, the Finance (No. 2) Act, 1971, changed the position of law. Section 5 of the Act was amended to some extent and in sub -section (1), clause (viii), after the words 'articles intended for the personal or household use of the assessee', the words 'but not including jewellery' were inserted, and it was further laid down that the above words shall be deemed to have been inserted with effect from April 1, 1963. In other words, this amendment was given retrospective operation and as such jewellery was not treated as articles intended for personal or household use of the assessee for enabling him to claim exemption from wealth -tax. However, Explanation 1 added to clause (viii) reads as under : 'For the purpose of this clause and clause (xiii), jewellery includes - (a) ornaments made of gold, silver, platinum or any other precious metals or any alloy containing one or more of such precious metals, whether or not containing any precious or semi -precious stone, and whether or not worked or sewn into any wearing apparel; (b) precious or semi -precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel.' ;