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TMI Blog1987 (3) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... nal's finding, the following question is referred to us : " Whether, on the facts and in the circumstances of the case, Explanation I to section 5(1)(viii) of the Wealth-tax Act, 1957, could be invoked for the assessment years under appeal, even though the said Explanation came into operation only with effect from April 1, 1972, and whether the value of gold ornaments not containing precious stones could, therefore, be added in the wealth-tax assessment ? " Section 5(1)(viii) of the Wealth-tax Act, 1957, and Explanation thereto read thus : " 5. (1) Subject to the provisions of sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee-... (viii) furniture, household utensils, wearing apparel, provisions and other articles intended for the personal or household use of the assessee, but not including jewellery... <?xml:namespace prefix = st2 /> Explanation I. -For the purpose of this clause.. and clause (xiii), 'jewellery ' includes, (a) ornaments made of gold, silver, platinum or any other precious metals or any alloy containing one or more of such pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what was implicit in the provision from its inception. Mr. Dalvi, learned counsel for the assessee, drew our attention to the Circular dated January 6, 1972, issued by the Central Board of Direct Taxes. It contains Explanatory Notes to the Finance (No. 2) Act, 1971. In paragraphs 102 to 106, the Circular deals with the " Withdrawal of exemption from wealth-tax in respect of jewellery, etc." It is stated therein that the said clause (viii) had been amended retrospectively from April 1, 1963, so as to exclude jewellery from the exemption thereby given. Further, the term " jewellery " had been given " an extended meaning prospectively " so as to include, inter alia, ornaments made of gold, silver, platinum or any other precious metals whether or not containing any precious or semi-precious stones. The circular incorporates in paragraph 105 the relevant portion of the Finance Minister's reply to the debate on the relevant Bill, which also refers to " the extended meaning of the term 'jewellery ' ". In paragraph 106, the Circular again says : " The exclusion of jewellery from the purview of the exemption is operative retrospectively from the assessment year 1963-64. The extended meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the connotation of the various types thereof as described in various local languages. In Hindusthani and Bengali, it noted, a clear distinction was made between ornaments which were made of gold or silver and ornaments which were set with stones. It was for this reason, the court stated, that the said Explanation I was introduced and the meaning of the word " jewellery " was extended to include ornaments made of gold, silver, platinum or other precious metals. If the court were to accept the contention that in its ordinary meaning the word " jewellery " included all ornaments made out of precious metals, with or without stones, then the introduction of the said Explanation I with prospective effect would become redundant and absurd. The court could not impute redundancy to a clause embodied in a statute. The, court, accordingly, held that ornaments not studded with stones were not includible in the net wealth of the assessee for the assessment year 1970-71. In the case of Meera Jaiswal v. CWT [1982] 136 ITR 548, the Punjab and Haryana High Court dealt with a case of gold ornaments in the context of section 5(1)(viii) of the Wealth-tax Act, 1957. It found that there were two e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the word " jewellery " as set out in the dictionaries and understood in common parlance included gold ornaments. They were almost always a jeweller's job. The Hindi word for jewellery certainly included such jewellery within its meaning. The terms of the said Explanation I could not take away the ordinary meaning of the word " jewellery ". The artificially enlarged meaning provided for by it included by way of abundant caution the meaning of the word. We have consulted the dictionaries ourselves. The Oxford English Dictionary defines " jewellery " as " jeweller's work ; gems or ornaments made or sold by jewellers ; especially precious stones in mountings ". The New Webster's English Dictionary defines " jewellery " as " jewels ; articles made of gold, silver, precious stones or similar materials for personal adornment ". As the Oxford English Dictionary, appears to suggest, the word "jewellery " may be derived from either the word " jewel " or the word " jeweller ". As derived from the word " jewel" , " jewellery" suggests an ornament that contains a precious stone or stones. As derived from the word " jeweller ", " jewellery " suggests an ornament made by jeweller. Whereas the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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