Agricultural holdings including in wealth tax in Punjab and Harayana. - Income Tax - 240/CBDT

INSTRUCTION NO. 240/CBDT Dated: November 20, 1970 Recently the High court of Punjab and Harayana has held that the levy of wealth-tax on agricultural holdings is ultra vires the constitution. The board have not accepted this decision and have filed an appeal before the Supreme Court. In this connection attention is invited to the board's letter F.NO.320/183/70-WT dated the 21-10-70. 2. The board have since consulted the Ministry of law and they are advised that the judgement of the Punjab and Harayana High court, referred to above would apply to all the assessees who are assessed by the Wealth-tax officers functioning within the states of Punjab and Harayana whether such assessees possess agricultural lands only in areas subject to the jurisdiction of that High court or even outside. On the other hand the value of the agricultural land wherever located in India can be taken into account in the case of an assessee by an officer who does not hold office within the jurisdiction of the Punjab and Harayana High court. However the board desire that in the cases of such assessees, if net wealth includes the value of agricultural land situated within the jurisdiction of the punjab and Harayana High court no coercive measures be taken to recover the demand raised on account of this inclusion.