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TMI Blog1976 (8) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Estate Duty Act of 1953 (hereinafter referred to as "the Act"). According to the revenue, duty had become leviable on the death of the former owners, Smt. Jayalakshmi Devi, who died on March 6, 1964, and Shri Madhava Rajah of Kollengode, who died on 9th May, 1955, each owning 1/13th share in the tarwad properties on the dates of their deaths. No question as to the effect of any amendment of the law upon liability of agricultural land to estate duty was referred by the Tribunal to the High Court. Nevertheless, it seems to have been considered by reason of the general nature of the question referred involving a determination of the correctness of the inclusion of the value of "forest land in the total value of the estate". We may observe here that the question framed seems to rest on the assumption that the land under consideration was "forest land" However, the general nature of the question framed and the questions argued and decided by the Appellate Tribunal as well as the High Court indicated that the real contest was about the very nature of the land involved in order to determine whether it was liable to estate duty. The High Court had observed that the Tribunal' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such person, a duty called 'estate duty' at the rates fixed in accordance with section 35. (2) The Central Government may, by notification in the Official Gazette, add the names of any other States to the First Schedule in respect whereof resolutions have been passed by the legislatures of those States adopting this Act under clause (1) of article 252 of the Constitution in respect of estate duty on agricultural lands situate in those States, and on the issue of any such notification the States so added shall be deemed to be States specified in the First Schedule within the meaning of sub-section (1)". After pointing out that agricultural land falls under item 48 of List 11 or the State List in the Seventh Schedule of the Constitution, the High Court held that estate duty on the land under consideration would become leviable provided it was agricultural land on the passing of resolutions by the legislature of the State of Madras as provided by section 5(2) set out above. These resolutions having been passed on April 2, 1955, the State of Madras was added in the First Schedule to the Act with effect from 6th June, 1955. Hence, the High Court held that the estate duty was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to look at the statute as a whole and give an interpretation in consonance with the purposes of the statute and what logically follows from the terms used. We are to avoid absurd results. If we were to give the widest possible connotation to the words 'agricultural land', as the Full Bench of the Andhra Pradesh High Court seemed inclined to give to the term 'agricultural land', we would reach the conclusion that practically, all land, even that covered by buildings, is 'agricultural land' inasmuch as its potential or possible use could be agricultural. The object of the Wealth-tax Act is to tax surplus wealth. It is clear that all land is not excluded from the definition of assets. It is only 'agricultural land' which could be exempted. Therefore, it is imperative to give reasonable limits to the scope of the 'agricultural land', or, in other words, this exemption had to be necessarily given a more restricted meaning than the very wide ambit given to it by the Full Bench of the Andhra Pradesh High Court. Learned counsel for the respondents had sought to rely strongly upon State of Kerala v. Gwalior Rayon Silk Manufacturing (Wvg.) Co. Ltd., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There is, however, no finding or evidence before us to that effect. Apparently, the learned counsel meant that forest land subsequent to the levy of estate duty had been acquired by the State to be converted and used for agricultural purposes. There being no evidence or finding of such a character before the events which attracted the estate duty, we cannot take notice of such a statement by counsel. It is irrelevant for the purpose of the cases before us. So far as the question of burden of proof is concerned, we think that to proceed on the assumption that all land is prima facie capable, of cultivation, so that the State must prove that it is non-agricultural in order to establish that it could be the subject-matter of legislation which was within Parliment's legislative competence, and, therefore, covered by the Act, is to mix up the question of legislative competence and that of taxability of what is, on the face of it, taxable is part of the estate or property of the assessee within the meaning of section 5 of the Act set out above. Indeed, the question of legislative competence of Parliament was neither in issue nor part of the question referred even if such a questio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t no operations in the nature of forest development were being carried on ; and that only operations in the nature of exploitation of the forest were being conducted. The accountable person, however, contended that these lands were capable of being brought under cultivation at a future date and that, therefore, they must be deemed to be agricultural lands. Reliance was sought to be placed upon the decision of the Madras High Court in Sarojini Devi v. Shri Kristna in which it was held that the expression 'agricultural lands' must be taken to include lands which are used or are capable of being used for raising any valuable plants or trees or for any other purpose of husbandry. The Tribunal was, however, of the view that in the said decision their Lordships did not intend to lay down a definition of the expression 'agricultural lands' for all purposes, and that, on the other hand, they clearly indicated that the expression admits of different interpretations and that it was only from the context of the particular enactment in which this expression is used that its meaning has to be inferred. The Tribunal observed that the very wide definition of the expression 'ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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