Law:

Section:

Section 2(e) of the Wealth-tax Act, 1957 - Assets - Assessment years 1959-60 to 1963-64 - Whether application of town planning scheme is only to regulate building activity and does not by itself convert what is already an agricultural land into non-agricultural property unless owner has taken steps to convert land into building plots or factory sites - Held, yes - Assessee purchased lands which were covered by certain cowles granted by Government - Wealth-tax Officer observed that area being fast developing industrial area and assessee having entered into agreement with a house building society to sell entire plot lands, said lands were not agricultural lands and, therefore, exemption under section 2(e) was not available in respect of said lands - Evidence on record pointed out that in pursuance of terms of cowle, palmyrah trees and date-palm trees were planted on lands, that there were 700 palmyrah trees and 150 palm trees on lands; that there was collection by assessee of Rs. 1,000 as and by way of income; that part of land was cultivated with blackgram, horsegram etc; that lands was described in revenue records as "punjai" and that there was a well in middle of property - Whether on facts, it could be said that lands were agricultural lands and, therefore, assessee was entitled to exemption under section 2(e) - Held, yes FACTS The assessee had purchased certain lands which were covered by cowls granted by the Government. He derived income from the lands, part of which was cultivated with black-gram, horesgram, etc., and which was having a well in the middle. For the assessment years in question, the WTO referring to the area as a fast developing industrial area having great demand for building sites for factories and house sites, and having found that the assessee had entered into an agreement with some house building society to sell the entire plot, took the value of the property at a progressively increasing valuation per ground, and completed the wealth-tax assessment. The AAC confirmed the assessment. The Tribunal pointed out that there was evidence that in pursuance of terms of cowle palmyrah trees and date-palm trees were panted on lands; that there…

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