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TMI Blog1962 (8) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... land; and (ii) on a proper appreciation of the material on record, the land that is in dispute in these petitions is an agricultural land Sri E.S. Venkataramiah, the learned counsel for the assessee, contended that Parliament could not have enacted any law levying tax on the capital value of land , be it agricultural or otherwise. According to him, land is included in the entry 49 of List II of the Seventh Schedule of the Constitution and, therefore, Parliament could not have enacted any law imposing tax on the capital value of land . We do not think that there is any force in this contention. The Wealth-tax Act was enacted evidently on the basis of the power conferred on Parliament under entry 86 of List I of the Seventh Schedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... competent to enact the Gift-tax Act under the residuary powers. The ratio of that decision is not applicable to the facts of the present cases. This takes us to the next question whether the land with which we are concerned in these cases could be considered as agricultural land . It is conceded by both the sides that if the land with which we are concerned in these cases are considered as agricultural land then no tax can be levied on the net value of the land on the basis of the Wealth-tax Act. Therefore, the question that has to be decided is whether the land in question is an agricultural land . It is not denied that at one time this land was agricultural land . That was requisitioned by the Government some time in the year 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing out the true meaning of the expression agricultural land . Next our attention was invited by Sri Venkataramiah to the observations of the Federal Court in Megh Raj v. Allah Rakhia*. Therein their Lordships, in passing, made some observations as regards the meaning of the expression agricultural land found in the Government of India Act, 1935. After examining the decisions rendered by various courts their Lordships observed thus: In this state of the authorities, it seems to us best to refrain from deciding the precise scope of the expression 'agricultural land' or the propriety of excluding 'land on which a grove has been planted' from the category of agricultural land. It may on a proper occasion be necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , with which we are concerned in these cases, is not an agricultural land within the meaning of that expression found either in the Constitution or in the Wealth-tax Act. It was next contended by Sri E.S. Venkataramiah that his client was compelled to hand over possession of the land as it was requisitioned and, therefore, he was not a willing party for its conversion. We fail to see any relevancy in this contention. We are not concerned with the question as to how the land became an agricultural land . Requisitioning was done according to law. Therefore, it cannot be said that there was any illegal conversion. The fact remains that it has ceased to be an agricultural land and the change effected cannot be ignored in law. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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