TOLARAM JALAN ORS Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) Smt. Panna Jalan, the assessee, was assessed to wealth-tax in the asst. yrs. 1965-66 to 1969-70. The assessee claimed before the WTO that her entire jewellery valued over Rs. 5,00,000 was exempt from wealth-tax under s. 5(1)(viii) of the WT Act, 1957. The WTO held that a part of the jewellery of the assessee of the value of Rs. 22,000 was not intended for her personal use and, therefore, was not entitled to exemption as claimed. In respect of the balance of the jewellery the assessees for exemption was accepted. The assessments were completed accordingly.

(2.) Appeals were filed against the assessment order by the assessee before the AAC and thereafter before the Income Tax Appellate Tribunal on other issues. The said appeal before the AAC was decided on 4-2-1971 and the appeal before the Tribunal was decided on 22-3-1973.

(3.) In the meantime s. 5(1)(vii) of the WT Act, 1957 was amended by the Finance (No. 2) Act, 1971. By the said amendment jewellery was excluded was excluded from the items exempted under the said section with retrospective effect from 1-4-1963. An explanation defining the expression jewellery was inserted in the said sub-section with effect from 1-4-1972.