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TMI Blog2018 (3) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... excluded the following items of jewellery consisting of pearls and stones from the net wealth: (i) Pearls and stones : Rs. 1,09,304 (ii) Stones : Rs. 1,27,500 (iii) Others : Rs. 14,300 2. The AO called for explanation of the assessee and the assessee explained that loose items not embedded in gold or silver or in any other precious metal is not includible in in net wealth. Not being convinced with the explanation of the assessee, the AO held that the pearls and stones covered under Sec. 2(ea) of the Wealth Tax Act under term "any other article" and accordingly brought the same to wealth tax. 3. Aggrieved by the order of the A.O, the assessee filed the appeal before the CIT(A) and the Ld. CIT(A) held that the pearls and stones in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ems to Wealth Tax. The Ld. CIT(A) confirmed the addition made by the A.O holding that loose peals and stones are included in the definition of the asset/jewellery/semi-precious stones. For ready reference we extract the relevant part of the CIT(A) order in page Nos. 3 and 4 in para Nos. 4.2 to 4.4 which reads as under: "4.2 The information on the record is carefully considered the definition of 'asset' for the purpose of Wealth tax reads as under: [(ea) "assets", in relation to the assessment year commencing on the 1s t day of April, 1993, or any subsequent assessment year, means- ( iii) jewellery, bullion and furniture, utensils or any other article made wholly or partly of gold, silver, platinum or any other precious metal or any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the definition itself whether they are sewn into apparel or not, they are liable to Wealth tax. 6. During the appeal hearing the Ld. AR argued that pearls are not precious stones and they are formed by the nature itself, therefore argued that pearls should not be included in the asset for the purpose of Wealth Tax. He also argued that pearls is neither precious stone nor semiprecious stone hence should not be included in the Wealth Tax. We have considered the argument of the Ld. AR as well as the Ld. DR carefully. As per the definition of jewellery in the Wealth Tax Act jewellery includes precious stones and semi-precious stones including the loose items not embedded in jewellery. The Ld. CIT(A) examined the definition of the gemsto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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