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TMI Blog1982 (8) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act imposes the charge of wealth-tax for every assessment year on the net wealth on the corresponding valuation date. The computation of net wealth is made in accordance with s. 4 by including the value of assets mentioned therein on the valuation date. Section 5 provides for exemptions in respect of certain assets. Clause (viii) of s. 5(1), as originally enacted, granted exemption in respect of " furniture, household utensils, wearing apparel, provisions and other articles intended for personal or household use of the assessee ". Clause (xv) of the same section, as originally enacted, exempted " jewellery " belonging to the assessee to a maximum of Rs. 25,000 " in value ". In CWT v. Arundhati Balkrishna [1970] 77 ITR 505, the Supreme C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i-precious stones, whether or not set in any furniture, utensil or other article or worked or sewn into any wearing apparel." As the Explanation was added only with effect from 1st April, 1972, the meaning of the words " but not including jewellery " added with retrospective effect from 1st April, 1963, for any assessment year prior to 1st April, 1972, has to be gathered without the aid of the Explanation. The Gujarat, Allahabad and Punjab and Haryana High Courts have taken the view that the word " jewellery " even for an assessment year prior to 1st April, 1972, would cover gold and silver ornaments irrespective of whether they are studded with precious or semi-precious stones or not and that the Explanation was added as a matter of abun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion on the meaning of the word " jewellery " and it agreed with the view taken by the Orissa and Calcutta High Courts. The conflict of opinion between the two Benches of the same court is an unfortunate but inevitable consequence when a High Court sits at different places. It is this conflict which has resulted in the present reference to the Full Bench. As earlier stated by us, the Explanation having been added only with effect from 1st April, 1972, defining the word " jewellery " by an inclusive definition, we cannot use it for the assessment year prior to 1st April, 1972. A perusal of the dictionary meaning of the words " jewel " and " jewellery " will go to show that although these words in a generic sense were used to denote cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ordinary dictionary meaning cannot be discarded simply because it is given in a dictionary. To do that would be to destroy the literal rule of interpretation. This is a basic rule relying upon the ordinary dictionary meaning which, in the absence of some overriding or special reasons to justify a departure, must prevail " (p. 137) : [CWT v. Officer-in-charge (Court of Wards), Paigah [1976] 105 ITR 133 (SC) ]. It will appear from the dictionary meanings quoted above that the ordinary meaning of the word " jewellery " is not so wide as to cover all ornaments. The ordinary meaning of the word as known now will only embrace precious and semi-precious stones and gold and silver ornaments which contain precious or semi-precious stones. It is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilal's case [1981] 132 ITR 868 (MP). The view taken by the Orissa and Calcutta High Courts and the dictionary meaning quoted by us above were not brought to the notice of the said Division Bench. For these reasons, we approve of the view expressed in Sonal K. Amin's case [1981] 127 ITR 427 (MP), and overrule the decision in Nandkishore Girdharilal's case [1981] 132 ITR 868 (MP). Our answer to the question referred by the Division Bench is that for the assessment years prior to 1st April, 1972, jewellery will not include gold ornaments not studded with precious or semiprecious stones, within the meaning of s. 5(1)(viii). The case will now be laid before the Division Bench for final disposal. There will be no order as to costs. - - TaxTM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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