Law:

Section:

Section 35(7) of the Wealth-tax Act, 1957 - Rectification of mistakes - Apparent from record - For assessment year 1969-70, AAC by his order dated 26-6-1970 allowed exemption to assessee qua jewellery and ornaments under section 5(1)(viii) holding that they were intended for personal use - neither side filed appeal against this order and period provided for appeal expired - subsequently following amendment of section 5(1)(viii) in 1971 with retrospective effect from 1-4-1963, excluding jewellery from exemption clause, aac rectified his predecessor aac's order on 22-2-1972 and withdrew the exemption granted earlier - high court held that question whether amending act applied to assessments which were already completed was a highly debatable question and, therefore, it was not a case of an error apparent on the face of the record which entitled aac to rectify his predecessor's order - whether aac's rectification order having been passed within four year period of limitation under section 35, aac's order dated 26-6-1970 could not be said to have become final - held, yes - whether, therefore, aac was justified in rectifying earlier order and it was unnecessary to consider whether a debatable question was involved as held by high court - held, on facts, yes FACTS For the assessment year 1969-70, the assessee was assessed for wealth-tax and his total wealth included jewellery and ornaments. The assessment order was made by the WTO on 11-2-1970. In an appeal preferred by the assessee, the AAC by his order dated 26-6-1970 excluded from her net wealth the said jewellery and ornaments on the ground that they being intended for personal use of the assessee, were exempt under section 5(1)(viii). In doing so the AAC followed CWT v. Amndhati Balkrishna [1970] 77 ITR 505 (SC). No further appeal was filed against that decision of the AAC by either side and in a sense, the order became final as the period provided for appeal against it was allowed to expire. Section 5(1)(viii) was amended by the Finance (No. 2) Act, 1971 and the words 'but not including jewellery' were added at the end of that clause which received the assent of the President on 10-8-1971 but it was brought…

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