TMI Blog1985 (4) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case, it was correct on the part of the Tribunal to hold in the assessment years 1966-67, 1967-68 and 1968-69 that the land owned by the assessee was agricultural land not assessable to wealth-tax under the Wealth-tax Act, 1957 ? " The facts may be briefly stated. From the assessment order of the Wealth-tax Officer for the assessment year 1966-67, it is evident that in the original assessment, the land situated at Ranchi Hazaribagh Road, Ranchi, belonging to the assessee was not included in the total wealth of the assessee although it was shown in Part IV of the return as agricultural land. This practice, the assessee had been following since the past. In the Income-tax assessment for the assessment year 1967-68, the questi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 101 kathas of land at the average rate of Rs. 3,000 which was the rate for the land sold by the assessee in the assessment year 1967-68 and thus he took the value at Rs. 3,03,000. This assessment was under section 16(3)/(17)(b) of the Act. For the same reasons, the Wealth-tax Officer assessed the value of the land at Rs. 2,80,750 for the assessment year 1967-68 under section 16(3)/(17)(b) of the Act, as in that year, the assessee had sold the land valued at Rs. 22,250. In the assessment year 1968-69, the assessee had shown the value of the agricultural land at Rs. 1,19,688 and so in the assessment year 1968-69, the Wealth-tax Officer took the value of these lands at Rs. 1,19,688. This assessment was made under section 16(3) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Tribunal has been annexed and marked as annexure C forming part of the statement of the case. Thus the only question which arises in this case is whether the lands in question of the assessee were agricultural lands during the assessment years 1966-67, 1967-68 and 1968-69. Under section 2(e) of the Act, the expression " assets " does not include agricultural land in relation to the assessment year commencing on the first day of April, 1969, or any earlier assessment year. Thus up to (and inclusive of) the assessment year 1969-70, agricultural lands will not be treated as " assets " for the purpose of the Act. Under section 45 of the Incometax Act, 1961, any profits or gains arising from the transfer of a capital asset effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase it was held that the land was agricultural land and the profit arising from the sale of the land was not liable to capital gains tax. In view of the aforesaid decisions, it has to be held that the lands of the assessee were agricultural lands for the assessment years in question. Under such circumstances, I hold that the Tribunal was correct in holding that in the assessment years 1966-67, 1967-68 and 1968-69, the land owned by the assessee was agricultural land not assessable to wealth-tax under the Act. The question is accordingly answered in the affirmative and in favour of the assessee and against the Revenue. However it may be observed that in the subsequent assessment years when this question arises, it will be obligatory for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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