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TMI Blog2017 (6) TMI 687X X X X Extracts X X X X X X X X Extracts X X X X ..... ily of Vadodara. The assessee owned a horse chariot popularly referred to as Baggi. This Baggi had substantial gold contents. The case of the assessee was that Baggi was a work of art and was, therefore, exempt from wealth tax under Section 5 (1) (xii) of the Wealth Tax Act, 1957. The case of the assesse is that he had inherited the said article as a member of the royal family. The Baggi was used by his father and grandfather on important ceremonial occasions. That the Baggi was otherwise operational. It contained gold panels on the sides of the seat for the royalty. According to the assessee, there was exquisite engraving and embossing on these gold panels, which contained figures of animals like elephants and horses. The Baggi was made specially for the use on ceremonial occasions with extensive art work on the gold panels and elsewhere also. 5. The department however held a belief that the article in question was meant for personal or household use and would therefore fall within Clause (viii) of Sub-section (1) of Section 5. Consequently, as per the first proviso, since this article contains gold, the exemption would not be available. While framing the assessment on the wealt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he work done is of superior artistic quality would not by itself exclude the operation of the proviso appended below clause 5(1)(viii) for bringing the royal coach, which is an article for personal use of the assessee, within the ambit of taxation for wealth tax purposes. Since the benefit of exemption has been specifically and unequivocally excluded by the legislative intention by introducing the proviso to clause (viii), we feel that it would be violative of accepted cannons of interpretation of statutes to confer exemption by bringing the article for personal use under clause (xii) as a work of art. Even if an article of personal use possess exquisite beauty and in characteristic by superior artistic quality, it would still be covered under the specific exclusion as envisaged under the proviso to clause (viii). The interpretation sought to be placed by the ld. CWT(A) is in our opinion entirely misconceived and clearly runs contrary to the express legislative intention as contained u/s. 5(1)(viii)." 8. We have heard learned advocates for the parties, who have relied on decisions in support of their cases. We would refer to these decisions at appropriate stage. Having perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utensils, wearing apparels and other articles intended for personal and household use of an assessee but not jewellery. Proviso to clause (viii) clarifies that such furniture, utensils or other articles are neither made wholly or partly of, nor contain gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals. In plain terms thus as per Clause (viii) of Sub-section (1) of Section 5, furniture, household utensils, wearing apparel etc. would be excluded while computing the net wealth. However, this exemption would not apply if the furniture, utensils etc. are made wholly or partly of or contain gold, silver, platinum or any other precious metal or alloys of such precious metals. 11. Clause (xii) of Sub-section (1) of Section 5 is also an exemption clause and covers any works of art, archaeological, scientific or art collections, books or manuscripts belonging to the assessee and not intended for sale. The work of art is clubbed with archaeological, scientific or art collection and the additional requirement of this exclusion clause is that it should not be intended for sale. 12. The expression "work of art" is not defined under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or some useful end or ends. Although Western painting and sculpture in the past traditionally tended to emphasize representation, the decorative arts used both abstract and representational design. Utility, design, and representation appear with varying degrees of emphasis in such arts as medieval book illumination, 'jewellery," Greek or Chinese vase painting, Persian rugs, and French rococo furniture. 18. It would not be possible to exclude an article even if it is jewellery from the expression "work of art" if it is made or composed with manifest skill. It is not as if the Revenue found these seven articles to be not any "works of art" based on expert assessment of the articles. It is, however, difficult for this Court to make any value judgment." 13. On behalf of revenue it was contended that being jewellery the article would not be covered by the exemption of Clause (xii). The Court held that if the case falls under any of the exemptions, the assessee would be entitled to benefit of exemption under Clause (xii) of Sub-section (1) of Section 5 of the Act and the revenue was not correct in contending that once it is established that the article is a jewellery, even if it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as a work of art and there must be some artistic innovation which would turn into works of art. The tribunal on inspection found that the trophies carry certain engraved markings of the occasion and events in which the assesseee won the cups and trophies and there was ho human skill applied on the said trophies or cups." 16. The Court thus referring to the Halsbury's Laws of England and Sampath Iyengar's commentary on taxation observed that for work of art, there must be an element of human skill employed in making of the article and the result of the human skill should be apparent in the article to regard them as works of art. Not every article manufactured manually can be regarded as a work of art and there must be some artistic innovation which would turn them into works of art. We may notice in the commentary by Sampath Iyengar, the term "works of art" is explained in somewhat restrictive sense representing sculptures by Michael Angelo, paintings by Rapheal, Ruben, Vandayke, Leonardo Da Vincy etc. 17. We may advocate perhaps not so restrictive understanding of the term "work of art" as to confine it to the work of greatest of the artists of the bygone era. The exam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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