High Court Of Rajasthan
Commissioner Of Wealth Tax vs. Rajendra Kumar
Section WT 5(1)(xii)
Asst. Year 1964-65, 1965-66
J. S. Verma, C.J. & N. C. Kochhar, J.
D. B. Civil WT Ref. No. 6 of 1981
9th August, 1988
Counsel Appeared
B. R. Arora, for the Revenue
BY THE COURT
This is a reference under s. 27(1) of the WT Act, 1957, at the instance of the CWT, to answer the following question of law, namely :
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the value of various items of drawings, paintings, manuscripts, etc., would be exempt under s. 5(1)(xii) of the WT Act, 1957, in the case of the assessee, ignoring the fact that in the accounting periods relevant to the income-tax asst. yrs. 1964-65 and 1965-66, the assessee had, in fact, sold some paintings, etc., and the further fact that the Department has not accepted the Tribunal’s earlier decision dt. 13th March, 1975, for the two years aforesaid ?”
The relevant assessment years are 1962-63, 1963-64, 1966-67, 1967-68, 1968-69, 1969-70, 1970-71, 1971-72, 1972-73, 1973-74, 1974-75 and 1977-78. In respect of the same assessee, the same question was referred to this Court for its decision relating to the asst. yrs. 1964-65 and 1965-66. The decision therein is CWT vs. Moti Chand Khajanchi (1988) 171 ITR 289.
The Tribunal’s view that the value of paintings was exempt from wealth-tax under s. 5(1)(xii) of the WT Act was upheld as justified in that decision. That decision has to be followed in the present case also relating to the same assessee in respect of some other years of assessment.
Consequently, the reference is answered against the CIT and in favour of the assessee by holding that the Tribunal was justified in taking the view that the value of paintings was exempt from wealth-tax under s. 5(1)(xii) of the WT Act, 1957.
No costs.
[Citation : 176 ITR 154]
