M A CHIDAMBARAM Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Tribunal, Madras 'A' Bench, Madras, has referred the following questions of law for our consideration under s. 27(1) of the WT Act (hereinafter called "the Act") :

(2.) THE assessee is an individual and filed the WT returns for the asst. yr. 1978-79, on 5th January, 1979. A revised return was also filed subsequently. It appears that there was a search on 20th January, 1981 in the premises of the assessee and in his native place at Kanadukathan. During the course of search it was found that there were silver articles weighing about 150 to 200 kgs. which were not properly explained. THE assessee claimed that out of the said quantity, 73.850 kgs. belonged to the assessee, that the assessee had converted trophies weighing 95.310 kgs. into silver articles and in the process obtained 75.310 kgs. after conversion. THE assessee claimed that the trophies should be regarded as works of art within the meaning of s. 5(1)(xii) of the Act, and they are exempted under the said provisions. THE WTO found that the provisions of s. 5(1)(xii) of the Act did not apply as the trophies cannot be regarded as works of art, as they really represented the prize money received in kind and in that view he rejected the claim for exemption preferred by the assessee. On appeal, by the assessee, the AAC found that the assessee had sold or exchanged the silver articles and the trophies and cups cannot be regarded as 'works of art' and further there was an intention to sell the article and, therefore, the assessee was not entitled to claim exemption under s. 5(1)(xii) of the Act and the inclusion of the value of trophies was correct.