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1. Interpretation of the provisions of section 35 of the Wealth-tax Act in relation to the amended provisions of section 5(1)(viii) involving a debatable question of law. Analysis: The judgment pertains to the interpretation of the provisions of section 35 of the Wealth-tax Act concerning the application of the amended provisions of section 5(1)(viii). The case involved the inclusion of jewellery in the wealth-tax assessment for the years 1962-63 to 1968-69, which was later deleted based on a Supreme Court decision. Subsequently, an amendment excluded jewellery from the exemption under section 5(1)(viii) with retrospective effect. The successor Commissioner issued a rectification order directing the inclusion of jewellery in the assessments, citing an apparent error in the earlier order. The Tribunal held that the applicability of the amended provision was debatable, relying on a Bombay High Court decision. The issue was whether the Commissioner's order was amenable to rectification under section 35. The historical context of the exemption provision for jewellery was discussed, highlighting amendments made to counter a Supreme Court decision. The Tribunal's decision was based on the absence of any apparent error in the Commissioner's order, following the Bombay High Court ruling. However, a previous Madras High Court decision differed in its interpretation, emphasizing that the retrospective effect of the provision allowed for rectification. The Commissioner's decision to apply the amended provision and restore the value of jewellery in the assessments was deemed valid, as there was no debate regarding the existence of jewellery in the present case. Regarding the specific assessment years 1962-63 and 1963-64, the applicability of the amended provisions was contested by the assessee. It was argued that the retrospective operation only applied from April 1, 1963, and thus, the assessments prior to this date should not be rectified. However, the court rejected this argument, emphasizing that the law applicable to assessments is determined by the provisions in force at the beginning of the relevant assessment year. The judgment clarified that the law in force at the start of the assessment year governs the computation of wealth on the valuation date, rejecting the contention that assessments prior to the enactment of the amended provision were exempt from rectification. In conclusion, the court held that section 35 of the Wealth-tax Act could be invoked to apply the amended provisions of section 5(1)(viii) for the assessment years 1963-64 to 1968-69. The judgment provided a comprehensive analysis of the legal principles involved in interpreting the provisions of the Wealth-tax Act and the application of retrospective amendments in wealth-tax assessments.
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