JUDGMENT :

B.K. Mehta, J.

This reference raises a short but interesting question about the powers of the Tribunal under section 35 of the Wealth-tax Act. Though the question is a short one its application has always posed problems before courts. Shortly stated, the facts leading to this reference are as under :

The relevant assessment year was 1963-64 and the valuation date was 31st December, 1962. The return was filed by the assessee, who is the applicant before us on 19th (sic) 1963. The assessee claimed exemption in respect of the jewellery on the ground that they were articles meant for personal use of the assessee and, therefore, not liable to be included within the net wealth of the assessee under section 5(1)(viii) of the Wealth- tax Act before its amendment. The assessee has filed a list along with her return where two categories of jewellery were broadly mentioned ; one category dealing with ornaments studded with precious stones, and the second category of golden ornaments simpliciter. The Wealth-tax Officer did not grant exemption in view of the disallowance made by him in the preceding year. The order of assessment was made on 19th May, 1965. The Wealth-tax Officer followe