Law:

Section:

Section 5(1)(viii) of the wealth-tax act, 1957-Exemption-Jewellery-Whether even before 1-4-1972, gold ornaments not studded with precious or semi-precious stones constituted jewellery within the meaning of section 5(1)(viii)-Held, yes Section 27 of wealth-tax act, 1957-Reference-General principles-Whether where the department is the applicant and it fails, despite repeated directions and opportunities given by court, to bring on record and have notices taken out to the legal representatives of assessee-respondent, the court may be constrained to decline to answer the question and to return the reference unanswered-Held, yes Facts The question referred was whether the ornaments made of gold, silver, platinum and any precious metals which were not studded with precious or semi-precious stones could be treated as exempt under section 5(1)(viii) up to 31-3-1972. However, during the pendency of reference before the High Court, made at the instance of the Commissioner, the assessee died. Consequently, the High Court brought this fact to the notice of the department and directed it to take steps to obtain the names of the legal representatives of the assessee and to bring them on record in place of the assessee before the reference could proceed further. However, the revenue contended that the rules did not cast any such obligation on the applicant and that the reference might be decided even without bringing on record the legal representatives or issuing notices to them. Held In view of the decision of the Delhi High Court in the case of CWT v. Savitri Devi [1982] 10 Taxman 287 ornaments made of gold, silver, platinum and any precious metals which are not studded with precious or semi-precious stones, were not exempt under section 5(1)(viii ) up to 31-3-1972. It is well settled that a reference under the tax enactments does not abate on the death of the concerned assessee. The position under the taxing Acts which enjoins the continuation of pending proceedings for assessment and recovery of tax against the legal representatives, should apply to appeals as well as reference, because the legal representatives will either be entitled to receive any refunds or be…

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