TaxTMI 
TaxTMI 
1995 (3) TMI 2
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....question : " Whether the word 'jewellery' in section 5(1)(viii) of the Wealth tax Act, 1957, prior to the amendment of the section and the introduction of the Explanation by the Finance (No. 2) Act of 1971, could take in gold ornaments without precious or semi-precious stones embedded on them? " The High Court has answered the question thus : "The word 'jewellery', in section 5(1)(viii) of the Wealth-tax Act of 1957, prior to amendment of the provision and the introduction of the Explanation 1 by the Finance (No. 2) Act of 1971, would not take in gold ornaments without precious or semi-precious stones embedded on them. " The Commissioner of Wealth-tax has filed the present appeals from the above decis....
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....rniture, household utensils, wearing apparel, provisions and other articles intended for the personal or household use of the assessee, but not including jewellery." (underlining ours). By the same Finance (No. 2) Act of 1971, Explanation 1 was also added to section 5(1)(viii). The Explanation, however, was made effective only prospectively, with effect from April 1, 1972. Explanation 1 is as follows : "Explanation 1.--- For the purposes of this clause and clause (xiii), 'jewellery' includes (a) ornaments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stone, and whether or not....
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...." as such without the benefit of Explanation 1, we must first consider how the term "jewellery" is ordinarily understood. In the New Shorter Oxford Dictionary, "jewellery" is defined as : " gems or ornaments made or sold by jewellers, especially precious stones in mountings; jewels collectively or as a form of adornment. " "Jewel" is defined as: " An article of value used for (personal) adornment, especially one made of gold, silver, or precious stones . . . . a precious stone, a gem ; especially one worn as an ornament." The terms "jewel" and "jewellery", therefore, refer to articles of value used for adornment, especially those made from gold, silver or precious stones. The terms are, therefore, wide enough to cover n....
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....semi-precious stones. It also covers, within the meaning of the term, such items which may or may not be sewn into any wearing apparel. It also includes precious and semi-precious stones whether or not set in any furniture, utensils or other article, or worked or sewn into any wearing apparel. The Explanation may have extended the meaning of "jewellery" to cover, for example, precious stones by themselves or precious stones set in furniture or utensils. But in so far as it includes ornaments made of gold, silver, platinum or any other precious metal or alloy, it is merely clarificatory in nature. Merely because ornaments made of gold and silver are now expressly included in Explanation 1, it is not possible to hold that they were earlier ex....