Law: Wealth Tax Act, 1957

Section: 5(1)(viii)

Section 5(1)(viii) of the Wealth-tax Act, 1957 - Exemption - Position prior to 1-4-1993 - Assessment year 1959-60 - Whether expression 'intended for personal or household use' would mean normally commonly or ordinarily intended for personal or household use according to ordinary ideas, habits, customs and notions of class of society to which assessee belongs or according to well established habits, customs and traditions of family of assessee - Held, yes - Whether mere possibility, therefore, that articles are capable of being put to a personal or household use would not be sufficient to treat them as intended for a personal or household use - Held, yes - Whether question whether articles are intended for personal or household use has got to be considered with reference to facts and circumstances as they exist at time when question has to be determined - Held, yes - Assessee claimed exemption in respect of certain gold articles received as souvenirs and rept in show case in drawing room in items of section 5(1)(viii) - Whether when assessee came in possession of those articles he did not intend to put them to a personal or household use nor has he put them to any such use at any time thereafter so far and, therefore, assessee could not get exemption for said articles under section 5(1)(vii) on ground that they were intended for personal or household use - Held, yes FACTS The assessee claimed exemption in respect of certain gold and silver articles under section 5(1)(viii). He was allowed exemption in respect of the silver articles, but the exemption was disallowed in respect of the gold articles. The assessee was connected. Which were presented to the assessee as souvenirs. The assessee kept those articles in a glass show case for display in his drawing room. Before the WTO, the assessee contended that those articles were household utensils, which were put to daily use, and therefore entitled to exemption. The claim was rejected by the WTO, who held that the household utensils for daily use, which were exempted under section 5(1)(viii) were ordinary utensils for day to day or ordinary use, and not utensils of gold which were meant for ornamental use for special…

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