The word 'jewellery' u/s 5(1)(viii) of the W.T. Act, 1957. - Income Tax - 434/CBDT

INSTRUCTION NO. 434/CBDT Dated: June 20, 1972 Section(s) Referred: 5(1)(viii) Statute: Wealth Tax Act, 1957 Attention of the Commissioners is invited to the provisions of Section 5(1)(viii) as amended by the Finance (No.2) Act, 1971. The question whether the word 'jewellery' occurring in Section 5(1)(viii) of the W.T. Act, 1957 includes gold, silver or platinum ornaments which do not contain any jewels or stones has been considered by the Board in the context of some decisions recently given by the I.T. Appellate Tribunal holding that ornaments made of gold, silver, platinum or any precious metal, which do not contain any precious or semi-precious stone, would be exempt from the W.T. u/s 5(1)(viii) upto 31st March, 1972. The Tribunal have expressed the view that the amendment brought about by the Finance (No. 2) Act, 1971 shows that the Legislature had drawn a distinction between jewellery and ornaments. 2. The above decisions of the Tribunal have not been accepted by the Board and a reference has been authorised. In this connection, extracts from the note recorded by the Ministry of Law and in the Board's office are sent herewith for your guidance. Pending an authoritative decision by a High Court, the Board desire that adverse decisions of the Appellate Asst. Commissioners and Tribunal should be contested. 3. The contents of the above instructions may kindly be brought to the notice of all the officers working in your charge.