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Section 5 of the Wealth-tax Act, 1957 - Exemptions - Position prior to 1-4-1993 - Assessment years 1963-64 to 1965-66 - Whether extended meaning of term 'jewellery' which includes gold ornaments not studded with precious or semi-precious stones in view of Explanation 1 to section 5(1)(viii) made effective from 1-4-1972, would be applicable only from assessment year 1972-73 onwards - Held, yes FACTS For the assessment years 1957-58 to 1971-72, the WTO made additions in computation of assessee's net wealth, in respect of the entire value of gold and silver ornaments held by the assessee. On appeal, the Commissioner (Appeals) deleted additions in so far as they related to assessment years 1957-58 to 1962-63 on ground that gold and silver ornaments intended for the personal or household use within the meaning of section 5(1)(viii) could not be included in her net wealth. He held that the extended meaning of the term "jewellery" would be applicable only with effect from the assessment year 1972-73 and onwards for the reason that Explanation 1 which extended this meaning came into force only with effect from 1-4-1972. On second appeal, the Tribunal, after considering the entire matter, upheld the order of the Commissioner (Appeals). On reference : HELD In view of the full Bench decision in CWT v. Smt. Tarabai Kanakmal [1983] 140 ITR 374 (MP), that by amending section 5(1)(viii ) by the addition of the Explanation it is effective only from 1-4-1972. 'Jewellery' will not include gold ornaments not studded with precious or semi-precious stones for any assessment years prior to 1-4-1972. The Tribunal was justified in taking the view that the extended meaning of the term 'jewellery' in view of Explanation 1 to second 5(1)(viii), would be applicable only with effect from 1-4-1972, i.e., for the assessment year 1972-73 and onwards. Note : The case was decided in favour of the assessee. R.C. Mukati for the Applicant. S.C. Goyal for the Respondent. JUDGMENT P.D. Mulye, J.-The Income-tax Appellate Tribunal, Indore Bench, Indore, at the instance of the Commissioner of Wealth-tax, Madhya Pradesh, Bhopal, has made this reference under section 27(1) of the Wealth-tax Act, 1957,…

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