9911796707
TMI Blog1970 (9) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, their market value should not be included for the purpose of computing the net wealth of the assessee for the assessment years in question. The Commissioner has, therefore, preferred this reference. Short facts of this case are that the respondent-assessee, Narandas Motilal, is being assessed in his individual capacity. In the year 1952, on the death of his adoptive father, he inherited two plots of land. One plot bearing survey Nos. 184 and 179/2 admeasuring 6,039 sq. yds., and the other plot bearing survey No. 112/1 admeasuring 12,552 sq. yds. These plots are situtated in the Navrangpura area. The evidence recorded in the case reveals, and the same is also an admitted fact, that right from the year 1952, when the assessee inhe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the Wealth-tax Officer, the assessee raised the contention that the plots of land covered by the above mentioned survey numbers were agricultural lands on all the se valuation dates and, therefore, they were not liable to the payment of wealth-tax. This contention of the assessee was rejected by the Wealth-tax Officer with the result that the assessee preferred an appeal before the Appellate Assistant Commissioner, who found that the lands were situated within municipal limits and were also on the western extremities of Navrangpura which had developed into a residential locality. He also considered the fact that the lands were plotted out by the assessee in the months of November and December, 1959, and were thereafter sold on yardage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned Advocate-General, therefore, even though it is proved that the assessee has continued to use the lands for agricultural purposes throughout the relevant period, their character has definitely been changed. As against this, it was contended by Mr. Kazi, the learned advocate of the assessee, that the character of the land would not change by the mere application of the Town Planning Act and the plotting out of the lands. It was pointed out by Mr. Kazi that the Tribunal has accepted the explanation given by the assessee about the plotting and sale of the lands and looking to this explanation, it should be believed that the assessee preferred to plot out and sell these lands in the year 1959 and subsequent years because it was appr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the land is used for agricultural purposes, ordinarily it would be correct to say that the land is agricultural land and vice versa. But even this test may not always furnish a correct answer, for there may be cases where land admittedly non-agricultural (such as a building site) may be used temporarily for agricultural purposes. In such cases it would not be correct to say that merely because the land is in fact being used for agricultural purposes, it is agricultural land. But, as a general proposition it may be stated without any fear of contradiction that ordinarily the actual user to which the land is being put would furnish prima facie evidence of the true nature or character of the land and, therefore, whenever a question arises whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity of Navrangpura and other societies to which reference is made, by the Appellate Assistant Commissioner in his order. It is in evidence that neither the assessee nor the persons to whom the assessee has sold different plots of land have, at any time, made any attempt to put this land to non aaricultural use. As a matter of fact, there is absolutely no evidence in the record going to show that even the purchasers have made, any attempt to carry on any non-agricultural activities on any of these plots of land. It is under these circumstances that the fact that the land is leave been subjected to agricultural use throughout the relevant period (sic). The fact that the land was never intended to be used during the relevant period as a build ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this land. As already stated above, the lands were not only put to agricultural use but they were so situated that they could not have been used for buildidg or non-agricultural purpose at any time during the relevant period. Therefore, the fact that the lands were plotted out and sold on yardage basis, would not be sufficient for changing its character. Taking, therefore, all these facts and circumstances of the case into consideration, we find no reasons to differ from the view taken by the Tribunal on this question. Our answer, therefore, to the question referred to us is in the affirmative. The matter is sent back to the Tribunal to be dealt with according to law. The Commissioner shall bear the costs of the respondent-assessee in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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