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TMI Blog1995 (3) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ese appeals by special leave arise from a common judgment of the High Court of Orissa (see [1978] 114 ITR 82) in seven reference applications before it under section 27(1) of the Wealth-tax Act, 1957. The High Court was required to consider the following 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les intended for the personal .... use of the assessee ". As a consequence, the Finance (No. 2) Act of 1971 amended the provisions of section 5(1)(viii) with retrospective effect from April 1, 1963, to read as follows : " 5. (1)(viii): furniture, 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), 'jewe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he term "jewellery" would cover only ornaments studded with jewels or precious stones. It would not cover in its ambit ornaments made only of gold, silver, platinum or any other precious metal or alloy. 5. To interpret the word "jewellery" 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t;jewellery". 7. Undoubtedly, the Explanation has been introduced by the Finance (No. 2) Act of 1971, partly to clarify this position. The Explanation provides an extensive definition of "jewellery". It includes ornaments made of gold, silver, platinum or any other precious metal whether or not containing any precious or 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 the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adhya Pradesh High Court in the case of Nandkishore Girdharilal Modi v. CWT [1981] 132 ITR 868. Another Bench of the Madhya Pradesh High Court in the case of CWT v. Smt. Sonal K. Amin [1981] 127 ITR 427, has, however, taken a contrary view. The Calcutta High Court has also taken a contrary view in the case of CWT v. Aditya Vikram Birla [1978] 114 ITR 711. For the reasons which we have set out above, we do not agree with the contrary view expressed by the Calcutta High Court in Aditya Vikram Birla's case [1978] 114 ITR 711 and by the Madhya Pradesh High Court in Sonal K. Amin's case [1981] 127 ITR 427. The Calcutta High Court has placed some emphasis on different vernacular terms used for different types of ornaments. In our view, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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