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TMI Blog1982 (11) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... t years which runs as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that ornaments made of gold, silver, platinum and any precious metals which are not studded with precious or semi-precious stones would be exempt from wealth-tax under section 5(1)(viii) of the Wealth-tax Act, 1957, up to the 31st March, 1972 ? " It is not necessary to elaborately set out the facts and contentions since the question referred to us is covered by an earlier decision of this Court (to which one of us has been a party) in W.T.Rs. 20 to 23/74, in the case of CWT v. Smt. Savitri Devi [1983] 140 ITR 525. By the judgment delivered on 16th December, 1981, this court has held that gold ornaments held by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeared for the late Smt. Rukmani Devi supplied the court with the names and addresses of the legal representatives whereupon notices were issued to them and one of them is also represented by Shri Gurnani, Advocate, before us. We have decided the reference after bearing the counsel for the applicant and Shri Gurnani. But we consider it necessary to indicate the procedure to be followed in such cases for general guidance in future. It is now well settled that a reference under the tax enactments does not abate on the death of the concerned assessee. Shri Gurnani, learned counsel for the respondent, attempted to contest this position. But having regard to the long line of decisions on this point (vide Law & Practice on Income Tax by Kanga a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpossible to countenance the suggestion made on behalf of the Department that, in such a case, we should proceed to dispose of the reference without having the legal representatives brought on record or hearing them or their counsel. Even in the absence of any statutory provision or any provision in the rules of the High Court in regard to this matter the requirements of natural justice alone demand that the reference should be heard and disposed of by us only after hearing the legal representatives of the deceased assessee or his counsel. It is true that the rules framed by this court (and, perhaps, by the other High Courts) do not make any specific provision for this situation. It is, however, obvious that steps in this behalf should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ple reason that no order can be passed by the court on a reference, even though the jurisdiction is purely advisory, without hearing the legal representatives of the deceased. We would, therefore, like to overrule the preliminary contention that has been submitted before us and to clarify that in cases where the Department is the applicant before the court and any of the respondents has died, it is for the Department, when made aware of this, to take steps to bring on record the legal representatives of the deceased respondent. It is true that if this is not done the reference does not abate, but if, in spite of opportunities and directions given by the court, the Department fails to take any steps in this regard, the court will be constrai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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