COMMISSIONER OF WEALTH TAX Vs. GINNI DEVI JALAN

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Patna Bench, has referred the following question of law to this court under Section 27(1) of the Wealth-tax Act, 1957 (hereinafter referred to as "the Act") :

(2.) THE material facts giving rise to this reference, briefly, are as follows : THE assessee was assessed under the Act for the assessment years 1968-69 and 1969-70. Subsequently, it came to the notice of the Wealth-tax Officer that the value of jewellery amounting to Rs. 2,20,173 had not been included by the Wealth-tax Officer in view of the judgment of the Supreme Court in the case of Smt. Arundhati Balkrishna [1970] 77 ITR 505, but the provisions of Section 5(1)(viii) of the Act were amended with retrospective effect from April 1, 1963. THE Wealth-tax Officer was of the view that allowance of exemption in respect of the jewellery in question was a mistake apparent from the record. THE Wealth-tax Officer, therefore, after issuing notice and hearing the assessee, rectified the order of assessment under Section 35 of the Act and included the value of jewellery in the order of assessment. Aggrieved by the order passed by the Wealth-tax Officer, the assessee preferred appeals which were dismissed by the Appellate Assistant Commissioner. On further appeal before the Tribunal, the Tribunal held, relying on a judgment of the Bombay High Court in the case of J.M. Shah v. J.M. Bhatia, AAC [1974] 94 ITR 519, that there was no mistake apparent from the record which could be rectified. In this view of the matter, the Tribunal set aside the order of rectification passed by the Wealth-tax Officer and allowed the assessee's appeals. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.