Law: Wealth Tax Act, 1957

Section: 27,5(1)(xii)

(a) Wealth tax--- ----Exemption---Law books in library of a lawyer---Entitled to exemption under S.5(1)(xii) and not as tools and instruments under S.5(l)(x) --- Indian Wealth Tax Act, 1957, S.5(1). In section 5(1) (xii) of Wealth Tax Act, 1957, the items "books and manuscripts" are mentioned after the items "works of art, archaeological, scientific or art collections". It cannot be held that books and manuscripts are qualified by the adjective or take colour from the items, such as works of art, archaeological, scientific or art collections. The rule of ejusdem generis cannot be applied, looking to the nature of the items and the manner in which they are enumerated in sub-clause (xii) of section 5(1) of the Wealth Tax Act, 1957. CWT v. S.N. Kacker (1989) 175 ITR 129 (All.) and CWT v. A.K. Sen (1991) 187 ITR 338 (Delhi) fol. Held, that "books and manuscripts" which are separately mentioned in clause (xii) cannot, by implication, be included in clause (x) under the words "tools and instruments", as in their ordinary meaning "books and manuscripts" are not included in those words. The law books in the library of an Advocate would be covered by section 5(1)(xii) and not section 5(1)(x) of the Act. (b) Interpretation of statutes--­ Scope of doctrine of ejusdem generis not applicable. JUDGMENT D.M. DHARMADHIKARI, J.---The following questions of law have been referred by the Tribunal to this Court at the instance of the assessee under section 27 of the Wealth Tax Act 1957: "(1) Whether the Tribunal was right in holding that books forming part of the library of an Advocate were outside the purview of 'books' as contemplated in section 5(1)(xii) of the Wealth Tax Act? (2) Whether books forming part of the library of an Advocate would tantamount to tools and instruments as stated under section 5(1)(x) of the Wealth Tax Act?" The relevant provisions of the Wealth Tax Act containing exemptions from wealth tax in relation to certain specified assets, partially or wholly, for decision of the question referred to us are as under: "5. Exemptions in respect of certain assets.---(1) Subject to the provisions of subsection (1-A), wealth tax shall not be payable by an assessee in…

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