SYED RAFIQUR RAHMAN Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) This is a reference under Section 27(3) (b) of the Wealth Tax of 1957 (Act 27 of 1957).

(2.) The relevant facts which have given rise to this present reference may be briefly stated as follows: The assessee was assessed under the Wealth Tax Act for the year 1962-63 for which the relevant date of valuati9n is 31-3-1962. The assessee filed a return disclosing his net wealth of Rs. 1,07,699. The, Wealth Tax Officer determined the total wealth at Es. 5,91,999. He included in this assessment a sum of Rs. 1,50,000 (One lac fifty thousand) representing the value of a plot of land owned by the assessee bearing survey plot No. 794 and situated at Bhat-tacharjee Road, Patna. The assessee contended that this was agricultural land and, therefore, was not liable to assessment under the Wealth Tax Act. The Wealth Tax Officer overruled this objection and as stated above included the value of this land also. The assessee then preferred an appeal before the Appellate Assistant Commissioner for the Wealth Tax and he dismissed the appeal and confirmed the order of the Wealth Tax Officer. The assessee, therefore, preferred an appeal before the Appellate Tribunal, and there also it was contended that the land in question was agricultural and used for agricultural purposes and as such not liable to assessment. The Appellate Tribunal also dismissed the appeal and thereafter an application was filed before the Appellate Tribunal for referring the case to the High Court and this was also rejected. The assessee then moved the High Court and a Division Bench of this Court on 30-8-1966 directed the Tribunal to state the case for the opinion of the Court under Sub-section (3) of Section 27 of the Wealth Tax Act. The question which was formulated by the Court is as follows:--

(3.) Before I take up the discussion of the facts and the questions of law which are involved in answering this question, I may first of all refer to the relevant provisions of the Wealth Tax Act (hereinafter called as 'the Act'). The charging section is Section 3 of the Act which lays down as follows: