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TMI Blog1982 (3) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... rchard since coconut tree is a fruit bearing tree. An "orchard" is defined is an enclosure with fruit trees. The WTO found that trees in an orchard or plantation are specifically excluded in the new provisions of section 5(1)(viiib) of the Wealth-tax Act, 1957 ("the Act"), which has come into force with effect from 1-4-1976. He, therefore, negatived the contention of the assessee and brought to tax in each year in question the value of the coconut garden at Rs. 60,125. 3. The assessee appealed. The appeals came to be disposed of ex parte. The AAC found that there was nothing wrong in the procedure adopted by the WTO. However, he found that the exemption under section 5(1)(iva) has not been granted. This will be well within the limit of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70, were in these terms : "(1) Subject to the provisions of sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee (iva) agricultural land belonging to the assessee; (viiia) growing crops (including fruits on trees) on agricultural land and grass on such land ;" Thereafter from 1-4-1976 clause (viiib) was introduced which is in these terms : "(viiib) trees standing on agricultural land, not being trees in an orchard or a plantation." 7. From the above it would appear that originally agricultural land and growing crops, grass, or standing trees on such land were outside the purview of the Act. Section 2(e) was ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crops, including fruits on trees on agricultural land" referred to in section 5(1)(viiia). The authorities below have not considered this item with reference to section 5(1)(viiia). We see no reason to hold that coconut trees are not covered under section 5(1)(viiia). We agree with the departmental representative that section 5(1)(iva), in the context of the other sub-sections, would only cover agricultural land not growing crops, grass or standing trees on such land because they are dealt with separately by means of section 5(1)(viiia) and (viiib). The overall limit mentioned in section 5(1)(iva) originally and now read with section 5(1A) do not apply to growing crops covered under section 5(1)(viiia) or trees standing on agricultural land ..... X X X X Extracts X X X X X X X X Extracts X X X X
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