TMI Blog1996 (5) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Inspector and concluded on the basis of his report that the same was not agricultural in nature. He, therefore, declined to exclude the value of the land from the net assets. The assessee preferred appeal before the Appellate Assistant Commissioner who too did not accept his case. On further appeal to the Income-tax Appellate Tribunal, the learned Members of the Tribunal differed in their views. The Vice President of the Tribunal on reference agreed with the views of the Accountant Member to the effect that the land in question was agricultural in nature and, therefore, liable for exemption under section 5(1)(iva) of the Act. In the above backdrop the following questions of law at the instance of the Revenue have been refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of fact but where such finding is arrived at on wrong premises or on consideration of irrelevant or insufficient facts it becomes a mixed question of law and fact amenable to the advisory jurisdiction of this court. Section 3 of the Wealth-tax Act, which is the charging section, lays down that subject to the provisions of the Act there shall be charged for every assessment year a tax in respect of the net wealth of every individual, Hindu undivided family and company at the rate or rates specified in the Schedule. The term "net wealth" has been defined to mean the amount by which the aggregate value computed in accordance with the provisions of the Act of all the assets, wherever located, belonging to the assessee on the valuation date, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te in the heart of the town of Patna and also that there was no evidence showing any on-going activity connected with agriculture on the land. In Raja Mustafa Ali Khan v. CIT [1948] 16 ITR 330, the Privy Council observed that although it may always be difficult to draw a line of demarcation between agricultural and non-agricultural land, yet unless there is some measure of cultivation on the land, some expenditure of skill and labour upon it, it cannot be said to be used for agricultural purposes within the meaning of the Act. It also held that income from the sale of forest trees growing on land naturally or without the intervention of human agency, even if the land is assessed to land revenue, is not agricultural income within the meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further the land is not assessed to land revenue. In the circumstances, this orchard could not be termed as agricultural land." One can take notice of the fact that a major portion of the Digha area, where the land in question is situate, was at one point of time dotted with good quality mango trees. In course of time a large number of the trees were cut away and in their place residential houses have come up. The assessee purchased the land, which measures only 0.19 acre, in 1970. The submission of counsel for the Revenue that the purchase of a small parcel of land at a time when the area was fast developing into residential/commercial area is a circumstance to show that the dominant purpose of the purchase cannot be lightly ignored. Fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that land revenue is being paid to the State by the person concerned, i. e., the assessee. To conclude, apart from the existence of mango trees there is no other evidence to suggest the character of the land as being agricultural and, therefore, it would not be wild to say that it is a case of no evidence. That being the position it must be held that the assessee has failed to discharge the onus and, therefore, the majority view taken by the Tribunal cannot be said to be correct either in law or on facts. Consequently, for the reasons stated above, we answer the questions in the negative, that is, in favour of the Revenue and against the assessee but make no order as to costs. Let a copy of this order be sent to the Income-tax Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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