COMMISSIONER OF WEALTH TAX Vs. NARANDAS MOTILAL

JUDGEMENT

(1.) THE only question which is involved in this reference is whether for the purpose of assessing the net wealth of the respondent assessee for asst. yrs. 1957 58 to 1963 64, the market value of the lands comprised by S. Nos. 184, 179/2 and 112/1 of Memnagar, Ahmedabad, should be included or not. The Tribunal has in the second appeal preferred by the assessee taken a view that the lands are agricultural lands and, therefore, their market value should not be included for the purpose of computing the net wealth of the assessee for the assessment years in question. The CIT has, therefore, preferred this reference.

(2.) SHORT facts of this case are that the respondent assessee, Narandas Motilal, is being assessed in his individual capacity. In the year 1952, on the death of his adoptive father, he inherited two plots of land. One plot bearing survey Nos. 184 and 179/2 admeasuring 6,039 sq. yds. and the other plot bearing survey No. 112/1 admeasuring 12,552 sq. yds. These plots are situated in the Navrangpura area.

(3.) BEING aggrieved with this decision of the AAC the assessee preferred a second appeal before the Tribunal. The Tribunal considered the location of the land as well as the actual use to which these lands were put by the assessee ever since he inherited them in the year 1952. According to the Tribunal, even though the assessee had plotted out the lands and had sold them after the application of the draft scheme under the Town Planning Act, 1954, its agricultural character had not changed. The Tribunal, therefore, decided the appeal preferred by the assessee in his favour. As said above, the CIT has preferred this reference in which the following law point has been referred to this Court for its opinion by the Tribunal.