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TMI Blog1976 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... e value of the jewels as Rs. for the asst. yr. 1967-68, Rs. for the asst. yr. 1968-69 and Rs. for the asst. yr. 1969-70. By his orders dt. 26th Dec., 1969 he determined the taxable wealth as Rs. for the above mentioned assessment years respectively. 3. Aggrieved by such assessments the assessee preferred WTA Nos. 181 C. 182 C and 183 C of 1969-70 contending that the jewels in question being intended for her personal use, the value thereof was not includible in computing the net taxable wealth. Such contention was raised on the basis of the decision of the Supreme Court in CWT, Gujara vs. Arundathi Balakrishna, report in (1970) 77 ITR 505 (SC). The AAC accepted the above contention after being satisfied that the jewels in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dt. 18th March, 1970. The AAC's attention was also drawn to the decision of the full Special Bench of the Tribunal in WTA No. 1498 of 1966-67 dt. 2nd Nov., 1972 in the case of Seth Rases N. Mafatla, Bombay reported in Taxation Volume 33(1972) s. VI, Page 201 in support of the contention and by his order dt. 24th Dec., 1973 he dropped the proceeding, which he had initiated under s. 35(1)(b) of the WT Act. Hence there appeals by the Department. 5. The appellant's authorised representative has raised the preliminary objection that these appeals are incompetent on the ground that there is no provision in the WT Act therefor. In our opinion the above objection is well founded and has to be accepted. 6. The only provision enabling the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the AAC, which are the subject matter of the instant appeals, cannot be considered to be orders passed by him under s. 23(5) of the WT Act. Therefore s. 24(2) cannot be availed of by the Department in support of these appeals. There is no other provision in the WT Act which provides for an appeal against the order passed by the AAC under s. 35. Under s. 25(1) of the WT Act an assessee can prefer a petition to the CWT to revise an order passed by an AAC under s. 35. The CWT also can suo motu revise the order of the AAC and pass such order thereon, but not being one prejudicial to the assessee. It may be noticed that sub-s. (2) of s. 253 of the IT Act, 1961, specifically provides for an appeal by the Department against the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record is stated to be the direction by the AAC for deleting the value of the jewels owned by the assessee while computing the taxable wealth for the above mentioned assessment years. It is claimed by the Department that the said direction given by the AAC is a mistake apparent in view of the retrospective amendment of s. 5(1)(viii) of the WT Act w.e.f. 1st April, 1963 effected by s. 32(2)(a) of the Finance Act No. 2 of 1971. But it is to be noticed that by s. 32(a)(3) of the Finance Act of 1971 apart from the provisos two explanations were also inserted in s. 5(1)(viii) of the WT Act, but all w.e.f. 1st April, 1972. The first explanation seeks to define the expression jewellery occurring in cl. (viii) and cl. (xiii) of s. 5(1), but the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendments made to s. 5(1)(viii) of the WT Act and consequently rectifiable under s. 35 of the said Act. 8. In this connection reference may be made to the decision of the Gujarat High Court in Padmavati Jaykrishna vs. CWT, Gujarat III, Ahmedabad, reported in (1975) 2 ITJ 235 where also a similar view was taken. The Departmental Representative brought to the notice that the Gujarat High Court has held in CWT, Gujarat vs. Jayantilal Amrital reported in 102 ITR 105 (Guj) that the definition given by the first explanation to s. 5(1)(viii) of the WT Act was only by way of greater caution and that ornaments made of gold, silver or platinum and studded with precious stones are to be considered as jewellery even for the assessment years pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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