TaxTMI 
TaxTMI 
1996 (5) TMI 50
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....agricultural land. The Wealth-tax Officer got enquiry made by 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 ....
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....acter of the land may be called, in the ordinary course, a finding 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, ....
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.... the assessee. It took into account the fact that the land was situate 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 ....
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....ast approaching from the northern side. There are few old trees on it. 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 ....