COMMISSIONER OF WEALTH TAX Vs. SHASHIBEN HIRABHAI DALPATRAM

JUDGEMENT

(1.) By this common judgement, we dispose of Wealth Tax Reference Nos.7 of 1995 and 8 of 1995.

(2.) The matters are being taken up for simultaneous hearing as in Reference Application No.33/34-35/Ahd/87, a common statement of case was drawn and the questions posed in sub-paragraph (1) and sub-paragraph (2) were referred to this Court for answer.

(3.) It is to be noted that the third matter was separately registered as Wealth Tax Reference No.56 of 1991 and was finally disposed of on 2nd December, 2004. We had called for the judgement delivered on 2nd December, 2004 in the matter of Commissioner of Wealth Tax vs. Shardaben, daughter of Haribhai Dalpatbhai, (one of the assessee in the present proceedings) in Wealth Tax Reference No.56 of 1991. The question referred to the Court in the said reference was whether the Appellate Tribunal was right in law and on facts in holding that the land in question was an agricultural land. The Court, after considering everything, came to the conclusion that the Tribunal was justified in observing and holding that the land was agricultural land. At the same time, it also referred to its another judgement in Wealth Tax Reference No.16 of 1993, between Commissioner of Wealth Tax and Shardaben, daughter of Haribhai (one of the assessee in these proceedings), decided on 2nd December 2004. In Wealth Tax Reference No.16 of 1993, the Court, after considering the totality of the circumstances and taking into consideration the character of the land and further potential use to which it can be put in future, observed that the potentiality may increase price, but, would not change the basic character. The Court observed that the land was rightly treated as an agricultural land. It answered the reference in favour of the assessee.