Law: Wealth Tax Act, 1957

Section: 27(1),5(1)(xviii),27(3),7

(a) Wealth tax--- ----Exemption---Gallantry award---Gallantry award must have been received by assessee---Jagir granted as gallantry award to ancestor---No evidence that award had been approved by the Central Government in terms of S.5(1)(xviii), Indian Wealth Tax Act, 1957---Assessee not entitled to exemption---Indian Wealth Tax Act, 1957, S. 5(1)(xviii). The assessee filed a return of his wealth as an individual for the assessment year 1970-71. The valuation date was March 31, 1970. The assets included in the return, inter alia, comprised land measuring 542 Kanals 19 Marlas. The assessee claimed exemption for the land under section 5(1)(xviii) of the Wealth Tax Act, 1957. The case of the assessee was that the land had been given to his ancestors in 1857 as gallantry award and he was, therefore, entitled to the exemption. The claim of the assessee was rejected by the Wealth Tax Officer on the ground that the assessee was not the recipient of the award but got the Jagir land by inheritance. This was upheld by the Tribunal. Another asset included in the return was land measuring 2,738 Bighas in a village in Karnal. The land had been declared surplus and allotted to the tenants under the provisions of the Punjab Security of Land Tenures Act. Total compensation which the assessee was held entitled to receive was Rs.37,000 in 10 annual instalments of Rs.3,700 each. Up to the valuation date, i.e. March 31, 1970, the assessee had received Rs.4,312 on this account, the remaining amount being payable by instalments at the rate of Rs.3,700 per year. The Wealth Tax Officer included the amount of Rs.37,000. This was affirmed by the Tribunal. The return also included land of the assessee in which 3,851 fruit-bearing trees were standing. The Wealth Tax Officer took the fuel value of the said trees as well as its yearly fruit-bearing capacity into consideration for estimating the value of those trees. The Appellate Assistant Commissioner affirmed, the finding of the Wealth Tax Officer. The Appellate' Tribunal reversed the finding of the authorities below and held that the value of the trees to be taken into consideration was only as fuel wood. Another asset included in the…

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