TOLARAM JALAN Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) Smt. Panna Jalan, the assessee, was assessed to wealth-tax for the assessment years 1965-66 to 1969-70. The assessee claimed before the Wealth-tax Officer that her entire jewellery valued at over Rs. 5 lakhs was exempt from wealth-tax under Section 5(1)(viii) of the Wealth-tax Act, 1957 ("the Act"). The Wealth-tax Officer 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 assessee's claim for exemption was accepted'. The assessments were completed accordingly.

(2.) Appeals were filed against the assessment order by the assessee before the Appellate Assistant Commissioner and thereafter before the Tribunal on other issues. The said appeal before the Appellate Assistant Commissioner was decided on February 4, 1971, and the appeal before the Tribunal was decided on March 22, 1973.

(3.) In the meantime, Section 5(1)(viii) was amended by the Finance (No. 2) Act, 1971. By the said amendment, jewellery was excluded from the items exempted under the said section with retrospective effect from April 1, 1963. An Explanation defining the expression " jewellery " was inserted in the said subsection with effect from April 1, 1972.