Law: Wealth Tax Act, (XV of 1963)

Section: 2(5),3,4,27

Wealth Tax Act (XV of 1963)--- ----Ss.2 (5), 3, 4 & 27---Assets---Reference to High Court---Purchase of agricultural land---Exemption in tax---Transfer against agreement to sell---Grievance of assessee was that he purchased agricultural land against agreement to sell which was for sale on profit and whole consideration amount was paid by him to sellers--Validity---According to agreement to sell in question, assessee had paid entire sale consideration and sellers had delivered possession of the property to assessee---Sellers had also executed general power of attorney in favour of assessee which was duly registered with concerned Sub-Registrar--On the basis of such documents, assessee transferred his agricultural land in question in favour of his minor son, which fact was neither denied nor disputed---Income Tax Appellate Tribunal was not justified in rejecting claim of ownership of agricultural land by assessee and treating the amount paid as advance payment for purchase of that land---In case it was found that property in question was in possession of the assessee, who had paid entire sale consideration and was in possession of a validly executed agreement of sale backed by a general power of attorney, the same would constitute a part of assessee's assets---Contention of authorities was that property in question was acquired for further sale on payment of management fee, which contention was neither substantiated nor supported by record---Position taken by assessee was not only supported by documentary evidence but also by relevant provisions of law and s of various Courts---Reference was decided in negative in circumstances. M. Ghulam Muhammad v. Custodian of Evacuee Property, Lahore and others PLD 1966 (W.P.) Lah. 953; Holomal v. Ghulam Ali PLD 1997 Kar. 509; Mst. Rasheeda Begum and others v. Muhammad Yousaf and others 2002 SCMR 1089; Dost Muhammad and others v. Ghaus Muhammad through Legal Heirs and others 2004 SCMR 515; Muhammad Bashir v. Abdul Haruki 1991 CLC Note 53; Ch.Hakim Ali v. Sultan Khan and 3 others 2001 MLD 563; Commissioner of Wealth Tax v. S.M.T. Satyabihama Ganeriwala ITR 196 at page 401 and Madgul Udyog v. Commissioner of Income Tax ITR…

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