Rectification under Wealth-tax law allowed to include jewellery value after amendment to the exemption provision.

Section 35 of the Wealth-tax Act, 1957 was held applicable to rectify completed assessments and include the value of jewellery in light of the amendment to section 5(1)(viii) by the Finance (No. 2) Act, 1971. The dispute turned on whether the later Explanations could be relied on to treat the omission as a mistake apparent from the record, and the Court followed the apex court view that such rectification was permissible. The issue was answered in the affirmative and the Revenue succeeded.

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Issues: Whether section 35 of the Wealth-tax Act, 1957 could be invoked to rectify the original assessments and include the value of jewellery so as to give effect to the amendment made to section 5(1)(viii) by the Finance (No. 2) Act, 1971.

Analysis: The question was governed by the scope of rectification under section 35 of the Wealth-tax Act, 1957. The assessments had been completed before the amendment, and the dispute was whether the later insertion of the Explanations to section 5(1)(viii) could justify reopening the completed assessments on the footing of a mistake apparent from the record. The Court followed the apex court decision holding that section 35 was applicable in such circumstances.

Conclusion: The question was answered in the affirmative. Section 35 could be invoked, and the Revenue succeeded.

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