1982 (8) TMI 123 - AT - Wealth-tax

Summary

Issues:
Interpretation of Expln. 1 to s. 5(1)(viii) of the ET Act for the assessment years 1965-66 to 1971-72.

Detailed Analysis:
The appeals by the revenue were raised due to the Appellate Assistant Commissioner's decision regarding the retrospective effect of Expln. 1 to s. 5(1)(viii) of the ET Act. The AAC directed the Wealth Tax Officer to exclude the value of jewellery assessed in the mentioned assessment years, following a judgment by the Hon'ble Madhya Pradesh High Court. The AAC consolidated the appeals for convenience and made a single order addressing the common point in all appeals.

The revenue contended that the AAC erred in granting relief to the assessee based on the retrospective effect of the amendment introduced in 1972. They highlighted a previous decision by the Indore Bench of the Hon'ble High Court, which held that gold ornaments not studded with gems are considered jewellery and should be included in an assessee's net wealth. The revenue argued that this decision should be followed, as it was rendered before the later judgment cited by the assessee. On the other hand, the assessee's counsel argued that the later judgment should apply, as it specifically addressed the provision of Expln. 1 in question.

The Tribunal reviewed the orders of the authorities and the arguments presented. They examined the previous decisions cited, including the one by the Indore Bench and the later judgment regarding the interpretation of the term "jewellery." The Tribunal noted that the conflicting opinions arose due to different circumstances and points addressed in the two judgments. Ultimately, the Tribunal found no fault in the AAC's decision to grant relief to the assessee based on the later judgment's interpretation of Expln. 1.

In conclusion, the Tribunal upheld the AAC's order and dismissed the revenue's appeals. The decision was based on the interpretation of Expln. 1 to s. 5(1)(viii) of the ET Act and the application of relevant judgments to determine the inclusion of jewellery in the assessee's net wealth for the specified assessment years.