COMMISSIONER OF WEALTH TAX Vs. VIDYAWATI DEVI RATHI

JUDGEMENT

(1.) AN identical question of law has been referred under section 27(1) of the Wealth -tax Act, 1957, in all the above -mentioned reference applications and, as such, the same are disposed of by one single order. The Income -tax Appellate Tribunal, Jaipur Bench, has referred the following question of law for the opinion of this court :

(2.) IN order to appreciate the controversy raised in these cases, it would be necessary to give a legislative history of the relevant provisions. The Wealth -tax Act, 1957 (hereinafter referred to as 'the Act'), came into operation from April 1, 1957. Under the aforesaid Act, net wealth exceeding particular limits belonging to an individual, Hindu undivided family or company became chargeable to wealth -tax. Section 5 of the Act provided exemptions in respect of certain assets. Sub -section (1), clauses (viii) and (xv) of that section, which are relevant for the purpose of these cases, are reproduced as under :

(3.) AFTER the above decision of the Supreme Court, the Finance (No. 2) Act, 1971, changed the position of law. Section 5 of the Act was amended to some extent and in sub -section (1), clause (viii), after the words 'articles intended for the personal or household use of the assessee', the words 'but not including jewellery' were inserted, and it was further laid down that the above words shall be deemed to have been inserted with effect from April 1, 1963. In other words, this amendment was given retrospective operation and as such jewellery was not treated as articles intended for personal or household use of the assessee for enabling him to claim exemption from wealth -tax. However, Explanation 1 added to clause (viii) reads as under :