PANDIT LAKSHMI KANT JHA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is a reference under Sub-section (1) of Section 27 of the Wealth Tax Act, 1957 (hereinafter referred to as the Act), by the Income-tax Appellate Tribunal, Patna, stating the following questions of law for the opinion of this Court:

(2.) THE assessee was the late Maharajadhiraj of Darbhanga. While computing his net assets for the purpose of the Wealth Tax Act, a dispute arose in respect of (1) the deduction from the market value of the shares held by the assessee of the brokerage commission (question No. 1), (2) complete exclusion from the assets of those ornaments and jewellery of the Darbhanga Raj which were intended for the personal or household use of the Maharajadhiraj (question No. 2), and (3) the exclusion from the total assets of any part of the amount of compensation which was not actually paid to him by the State (question No. 3).

(3.) THERE can be no doubt that a premier zamindar in the State of Bihar as the assessee may have kept in his possession several ornaments which were intended for his personal use. It may also be true, as urged by Mr. Lalnarayan Sinha for the assessee, that some other ornaments, including precious stones, might have been kept by the assessee not for personal use but solely as capital kept in a convenient form. He, therefore, urged that the Wealth-Tax authorities should not have rejected totally the claim of the assessee but should have examined every item of the jewellery with a view to decide whether it was intended for personal use, and then decided whether to apply Clause (viii) or Clause (xv).