COMMISSIONER OF WEALTH TAX Vs. RUKMANI DEVI

JUDGEMENT

(1.) THIS is a consolidated reference under the WT Act relating to the six asst. yrs. 1965 -66 to 1970 -71. The reference has been made at the instance of the CWT. It arises out of the wealth -tax assessments made on Smt. Rukmani Devi for the above assessment years. A common question of law has been referred for all the assessment years which runs as follows:

(2.) IT is not necessary to elaborately set out the facts and contentions since the question referred to us is covered by an earlier decision of this Court (to which one of us has been a party) in W.T.Rs. 20 to 23/74, in the case of CWT vs. Smt. Savitri Devi (1983) 140 ITR 525. By the judgment delivered on 16th Dec., 1981, this Court has held that gold ornaments held by an assessee would constitute jewellery within the meaning of S. 5(1)(viii) of the WT Act, 1957, even though such ornaments are not studded with precious or semi -precious stones. Following the decision in the said references, we have to answer the question referred to us in the present references also in the negative and against the assessee. We answer the references accordingly.

(3.) FORTUNATELY , an advocate who had originally appeared for the late Smt. Rukmani Devi supplied the Court with the names and addresses of the legal representatives whereupon notices were issued to them and one of them is also represented by Shri Gurnani, Advocate, before us. We have decided the reference after bearing the counsel for the applicant and Shri Gurnani. But we consider it necessary to indicate the procedure to be followed in such cases for general guidance in future. It is now well settled that a reference under the tax enactments does not abate on the death of the concerned assessee. Shri Gurnani, learned counsel for the respondent, attempted to contest this position. But having regard to the long line of decisions on this point (vide Law & Practice on Income Tax by Kanga and Palkhivala, 7th edn., Vol. I, pp. 1168 -9), we do not consider it advisable to re -open the issue or re -consider the matter at length as if it were res integra. The reference has not abated due to the death of Smt. Rukmani Devi.