Law:

Section:

Section 5(1)(xii) of the Wealth-tax Act, 1957 - Exemptions - Books or manuscripts belonging to assessee - Assessment year 1977-78 - Whether books in law library held by assessee, an advocate, and used by him in carrying on his profession qualify for exemption under section 5(1)(xii) - Held, yes FACTS The assessee, an advocate, had a very good library for practising as a lawyer. He claimed the library books to be exempt from wealth-tax under section 5(1)(xii). The WTO rejected the assessee's claim on the ground that the 'books or manuscripts' mentioned in section 5(1)(xii) could not apply to the library books on the principle of ejusdem generis, as books or manuscripts could only be considered to refer to only works of art and collection of archaeological, scientific or art and not books used by the assessee for his profession in the library. On appeal, the Commissioner (Appeals), however, held that the principle of ejusdem generis could not be applied while interpreting section 5(1)(xii) as works of art, archaeological collections, scientific collections which preceded the word 'books' in section 5(1)(xii) would not fall into the same category or genus and, accordingly, allowed the assessee's claim for exemption under section 5(1)(xii).On further appeal, the Tribunal also confirmed the order of the Commissioner (Appeals). On reference: HELD Clause (xii ) of section 5(1) on critical analysis can be divided into three parts (i) any works of art, (ii) archaeological, science or art collections, and (iii) books or manuscripts belonging to the assessee and not intended for sale. It is apparent that the subjects enumerated in different parts of the section do not constitute the same class or category or genus. The first part refers to any work of art. The second part refers to the collections relating to archaeology, science or art, and the third part refers to manuscripts and books belonging to the assessee and not intended for sale. The phraseology used in different parts do not form same class, category or genus and, therefore, the general words used in the third part cannot be construed of the same kind as those specified earlier. Further, the legislative intent…

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