1990 (12) TMI 181

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....d against the order dated 13-4-1989 of the Commissioner of Income-tax (Appeals), Madurai, relating to the assessment years 1981-82 to 1985-86. 2. The assessee owns 145 acres of land out of which some portion is ordinary agricultural land and the other portion consisted of rubber plantation garden. In her Wealth-tax return for the assessment years 1981-82 to 1985-86, the assessee claimed that th....

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.... of the assets. The Commissioner of Income-tax (Appeals) accepted this claim of the assessee and held that the agricultural income-tax liabilities cannot be disallowed. He also noticed that the assessee had claimed exemption of liabilities which are outstanding for more than 12 months and he, therefore, directed the assessing officer that he shall disallow such of these liabilities which are outst....

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....ection 2(e) of the Wealth-tax Act defines the expression "assets" to include property of every description, movable or immovable, but does not include agricultural land other than land comprised in tea, coffee, rubber or cardamom plantation. From this definition, it is clear that agricultural land cannot be treated as an asset for the purposes of computation of net wealth. The expression "net weal....

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....year commencing from the 1st April 1955 in accordance with and subject to the provisions of that Act on the total agricultural income of the previous year of every person. Shortly, the agricultural income-tax is a charge on agricultural income of the previous year and it is not a tax levied on the agricultural lands. In the case under consideration, the assessee paid agricultural income-tax on her....