Commissioner of Wealth-tax vs Smt. Usha Devi (Lrs. of H.H. Maharaja Yeshwant Rao Holkar)

V.D. Gyani, J.—Since all these petitions involve a common question of law, they are heard together and are being disposed of by a common order. This order shall govern the disposal of all these petitions.

This is a petition u/s 27(3) of the Wealth-tax Act, 1957 (for short, "the Act"), praying for calling a reference of the case from the Income Tax Appellate Tribunal, Bombay Bench "A", Bombay.

Brief facts are that Smt Usha Devi is the successor of the late His High ness Maharaja Yeshwant Rao Holkar of Indore. The Central Board of Direct Taxes having recognised certain articles of heirloom jewellery under the Wealth-tax (Exemption of Heirloom Jewellery of Rulers) Rules, 1958, granted exemption for the purpose of Clause (xiv) of Sub-section (1) of Section 5 of the Wealth-tax Act, 1957, vide letter No. 4/1 (12/58-WT) dated January 19, 1959, in the wealth-tax assessment of the late Maharaja. As some heirloom jewellery was sold some time in the month of November/ December, 1971, the Board, vide their order F. No. 317/14/77-WT dated December 12, 1980, withdrew the recognition in respect of two items of jewellery sold with retrospective effect from September 19, 1959. With a view to give effect to the said order, the Wealth-tax Officer, Indore, revised the net wealth assessed for the respective assessment years from the assessment years 1962-63 to 1971-72, by making an addition of Rs. 13,80,000 in each year, treating the same as the fair market value of the jewellery sold as on the date of sale.

The revised orders were the subject-matter of appeals by the assessee. The appeals were dismissed. Second appeals were preferred before the Tribunal, Bombay Bench "A", Bombay. The Income Tax Appellate Tribunal quashed the orders placing reliance on a decision of this court in Smt. Usha Devi (Legal representative of H.H. Maharaja Yeshwantrao Holkar) Vs. Wealth-tax Officer, Special Investigation Circle-I and Others, (M. P. No. 282 of 1981, dated 31-10-1986). A reference was preferred u/s 27(1) of the Wealth-tax Act for making a reference to this court. This application u/s 27(1) of the Wealth-tax Act was dismissed by the Tribunal. Hence, the present petitions u/s 27(3) of the Wealth-tax Act.

Having heard learned counsel for the parties, we are of the view that the case is fully covered by the aforesaid judgment Of this court in M. P. No. 282 of 1981 Smt. Usha Devi (Legal representative of H.H. Maharaja Yeshwantrao Holkar) Vs. Wealth-tax Officer, Special Investigation Circle-I and Others, ). The Tribunal, in the face of the aforesaid judgment of this court in the said case, has rightly arrived at the conclusion that no referable question of law arises out of the order dated May 15, 1987, passed by the Tribunal.

It was urged by Shri Samvatsar, learned counsel for the Department, that the matter is now pending before the Supreme Court. As has been held by a Division Bench of the Madras High Court in Commissioner of Income Tax Vs. Carborandum Universal Ltd., the High Court is justified in rejecting a petition for directing a reference and the fact that the same issue is pending before the Supreme Court is no ground for directing such a reference.

In this case particularly, this court has also held in Commissioner of Wealth-tax Vs. Princess Usha Trust, that where any matter was pending before the Supreme Court, it could not be a valid ground to call upon the Tribunal to make a reference as the same point had already been decided by the court between the same parties.

As the point of controversy stands decided by this court in favour of the assessee and the Tribunal having followed the decision of this court, we hold that no referable question arises in this case. In the circumstances, the petitions fail and are accordingly rejected.