1975 (9) TMI 10

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the section and the introduction of the Explanation by the Finance (No. 2) Act of 1971, could take in gold ornaments without precious or semiprecious stones embedded on, them ? " The relevant valuation dates are 31st of March of each of the years in question. The Wealth-tax Officer, while taking up assessment proceedings for the years 1968-69 to 1971-72, had reasons to believe that the assessee had failed to file returns in respect of the assessment years 1965-66 to 1967-68. Notice under section 17 of the Act was, therefore, issued in respect of the said three years. While completing the assessments for all the years in question, the Wealth-tax Officer included in the net taxable wealth the value of gold ornaments as he was of the view ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....behalf of the assessee that section 5(1)(xv) deals with jewellery which are not intended for the personal use of the assessee, such as heirloom or other jewellery which are retained as valuable assets or intended for the use of persons other than the assessee, whereas section 5(1)(viii) takes in only such jewellery as are intended for the personal use of the assessee. We think the contention advanced on behalf of the assessee is the correct one. It is well known that jewellery is widely used as articles of personal use by the ladies in this country specially by those belonging to the richer classes. That being so, jewellery intended for the personal use of the assessee comes within the scope of section 5(1)(viii). But the jewellery mentione....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mendment to the. position by the Finance (No. 2) Act of 1971. Under the amendment, in section 5(1)(viii), exemption from net wealth was provided in the following terms : Furniture, household utensils, wearing apparel, provisions and other articles intended for the personal or household use of the assessee but not including jewellery. The phrase " but not including jewellery " was specifically added with effect from April 1, 1963. Two Explanations were added prospectively with effect from April 1, 1972. Explanation 1, which is relevant, provides : " 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....