COMMISSIONER OF WEALTH TAX Vs. KACKER S N

JUDGEMENT

(1.) THE following question has been referred to us for our opinion at the instance of the Commissioner of Wealth-tax, Lucknow :

(2.) THE assessee, a leading senior advocate, then also the Advocate-General of the State of Uttar Pradesh, owned law books of the value of Rs. 28,944 for use in his profession. In his wealth-tax return for the assessment year in question, namely, 1972-73, he claimed that the value of such books was totally exempt from wealth-tax under Clause (xii) of Section 5(1) of the Wealth-tax Act, 1957. THE Wealth-tax Officer, however, allowed him exemption to the extent of Rs. 20,000 only, treating the assets comprising such books as covered by Clause (x) under which there was then a ceiling of exemption amounting to Rs. 20,000 only. In the opinion of the Wealth-tax Officer, the assessee's case was not covered by Clause (xii) of Section 5(1). Consequently, a sum of Rs. 8,944 was added to the total wealth of the assessee in the assessment of wealth-tax.

(3.) FOR the decision of the question referred for our opinion, it will be convenient to have the relevant provisions of Section 5(1) of the Wealth-tax Act before us :