RAJENDRA KUMAR SETHIA Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) In this reference under Section 27(1) of the Wealth-tax Act, 1957, for the assessment years 1977-78, 1978-79 and 1979-80, the following question of law has been referred to this court :

(2.) Shortly stated, the facts are that the assessee who owned certain jewellery claimed that jewellery was exempted under Section 5(1)(xii) of the Act, on the ground that it consisted of works of art. The Wealth-tax Officer negatived the claim of the assessee and, on appeal, the action of the Wealth-tax Officer was confirmed by the Appellate Assistant Commissioner. On further appeal, at the instance of the assessee, the Tribunal upheld the order of the Appellate Assistant Commissioner.

(3.) At the hearing Mr. Sukumar Bhattacharya, learned advocate appearing for the assessee, while conceding that the jewellery belonging to the assessee consisted of ornaments made of gold, contended that these items of assets being works of art were eligible for exemption under Section 5(1)(xii) of the Act. It is his contention that the jewellery in question having been manufactured by employment of professional skill and fine workmanship had to be regarded as work of art. It was contended that Section 5 is not a charging section but a section providing for exemption in respect of certain assets while computing the net wealth of the assessee.