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TMI Blog1966 (1) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ate of Bihar under the Bihar Land Reforms Act on and from the 1st July, 1952. He was entitled to receive compensation in that respect from the Government. The manner in which the compensation will be computed as due to an ex-proprietor of an estate has been prescribed in the Act itself. The Wealth-tax Officer included Rs. 10,26,123 in the net wealth of the assessee for determining the wealth-tax payable by him as, according to him, that was the amount of compensation due to the assessee from the Government. The basis of that calculation was what the Agricultural Income-tax Officer, Arrah, had determined for the year 1359 Fasli to be the assessee's zamindari income (Rs. 3,42,041). The Wealth-tax Officer took three times of that as the minimu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1950) constituted an 'asset' within the meaning of section 2(e) of the Wealth-tax Act and so liable to be included in the assessee's net wealth on the two valuation dates relevant for the assessment years 1957-58 and 1958-59. " The charging section 3 of the Act provides that for every financial year, a tax in respect of the net wealth on the corresponding valuation date of every individual, Hindu undivided family and company at the rate or rates specified in the schedule shall be charged. The net wealth has been defined in clause (m) of section 2 as meaning the amount by which the aggregate value of all the assets belonging to the assessee on the valuation date is in excess of the aggregate value of all the debts owed by him on that valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General Clauses Act, 1897, includes land, benefits to arise out of land and the things attached to the earth or permanently fastened to anything attached to the earth. That, again, is not exhaustive. Movable property is defined in that Act (General Clauses Act) as meaning property of every description except immovable property. " Property " is very comprehensive in its meaning; it includes real and personal property and debts, any-chose -in- action and any other right or interest in the nature of property. It includes not only physical objects but also rights and interests existing or derived out of physical objects. Thus, we find that "assets" as defined in the Wealth-tax Act is very wide in import as it includes property in general sense, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake into account. A taxing statute has to be enforced in its letter; and whether that will bring any inequitable consideration against the subject is not for the court to meditate upon. Many things which may appear equitable within the purpose of a taxing statute are often excluded from enforcement for the simple reason that, though that may be consistent with the spirit of the Act, they do not come within the letter of that. The sole purpose of the Wealth-tax Act, 1957, was to authorise the levy of a particular taxation. If the right to compensation from the State in lieu of the estate of which the proprietor was divested is property and is, therefore, included in the definition of "assets" as given in the Act, there is no escape for that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of compensation payable to the assessee and then to, estimate what would be the market value with reference to the manner in which the amount payable is designed by the Government. This was a pertinent course to be adopted. The right to receive compensation under the Bihar Land Reforms Act constituted an asset to be included in the net wealth, of which value was to be determined according to section 7 of the Act both for the assessment years 1957-58 and 1958-59, so far as the assessee was concerned. This disposes of one of the two questions referred. Clause (m) of section 2 of the Act, where " net wealth " has been defined to be the aggregate value of all the assets belonging to an assessee in excess of the aggregate value of all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act and the Gift-tax Act. The very fact that Parliament chose to leave the laws relating to taxation of income and profits without any qualification is clearly indicative of its wider scope. All kinds of laws relating to such taxation, whether by the State legislature or by Parliament, therefore, are included under that provision. The agricultural income-tax due from the assessee and outstanding for a period of more than twelve months on the valuation dates was, therefore, not to be comprised within the aggregate value of all the debts owed by him for determining his net wealth. The Appellate Tribunal in its order in relation to two assessment years, 1957-58 and 1958-59, held that the sum of Rs. 2,71,952, the outstanding of agricultura ..... X X X X Extracts X X X X X X X X Extracts X X X X
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