Wealth-tax reference on right to wear jewellery as an asset remained open because the trust deed materially differed from earlier precedent.

A referable question of law arose on whether the right to wear jewellery could be assessed as an asset under the Wealth-tax Act, 1957, particularly in light of the retrospective amendment to section 5(1)(viii). The earlier High Court view was not treated as conclusive because the trust deed in the present matter was materially different from the deed considered in the prior decision. On that basis, the issue was not foreclosed and required consideration by the High Court. The assessee's objection to reference therefore failed.

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Issues: Whether, in the facts of the case, a question of law arose requiring the Tribunal to refer the matter to the High Court on the assessment of the right to wear jewellery under the Wealth-tax Act, 1957.

Analysis: The earlier view relied upon by the High Court was distinguished because the trust deed in the present case was materially different from the deed considered in the prior decision. In view of that difference, the question whether the right to wear jewellery constituted an asset assessable under section 21(1), despite the retrospective amendment to section 5(1)(viii), could not be treated as foreclosed. A referable question of law therefore arose for consideration by the High Court.

Conclusion: The question was required to be referred to the High Court for its consideration, and the assessee's objection to reference failed.

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