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Issues Involved:
1. Whether the land in question is agricultural land or non-agricultural land. 2. Whether the value of the land should be included in the taxable wealth of the assessee. Detailed Analysis: 1. Whether the land in question is agricultural land or non-agricultural land: The primary issue revolves around the classification of the land as agricultural or non-agricultural. The revenue contended that the land was not agricultural, as the assessee intended to develop it into a residential colony and had obtained necessary approvals for the same. The Assessing Officer noted that despite the land being recorded as agricultural in revenue records, there was a clear intention to use it for commercial purposes, evidenced by the sale of a plot and the construction of a house. The lack of evidence for ongoing agricultural operations further supported this view. The assessee, however, argued that the land was used for agricultural purposes even after obtaining approvals for residential development. They provided evidence including revenue records, purchase deeds, and affidavits indicating agricultural use and income from crops. The DCWT(A) supported the assessee's claim, citing documentary evidence and previous judicial decisions that agricultural operations on land approved for residential use do not alter its agricultural character. Upon appeal, the Tribunal considered the facts and circumstances, emphasizing that the character of the land should be determined by its intended and actual use. The Tribunal noted that the land was converted for non-agricultural use as early as 22nd June 1979, and the assessee's subsequent actions, including plotting and selling parts of the land, indicated a shift from agricultural to non-agricultural use. The Tribunal concluded that despite some agricultural activities, the primary intention and use of the land were non-agricultural, reversing the DCWT(A)'s decision. 2. Whether the value of the land should be included in the taxable wealth of the assessee: The second issue pertains to whether the value of the land should be included in the taxable wealth. The assessee argued that since the land was agricultural, it should be exempt from wealth tax. The DCWT(A) agreed, excluding the land's value from the taxable wealth based on its agricultural classification. The Tribunal, however, determined that the land's character had changed to non-agricultural due to the approved residential development and subsequent actions by the assessee. Consequently, the land did not qualify for exemption under the Wealth-tax Act. The Tribunal directed the DCWT(A) to reassess the land's value for inclusion in the taxable wealth, reversing the previous decision. Conclusion: The Tribunal held that the land in question should be classified as non-agricultural for wealth tax purposes, reversing the DCWT(A)'s decision. The value of the land is to be included in the taxable wealth of the assessee, and the DCWT(A) is directed to determine the valuation after providing an opportunity for both parties to be heard.
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