9911796707
TMI Blog1976 (12) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... gh in whose favour mutation of inherited agricultural lands was effected on 13 Magh S.Y. 1981 along with his brother, Amar Singh. The lands, the assessability of which is the subject-matter of dispute, had come to the share of Arjan Singh on the death of his father, Gokha Singh, who in turn had inherited the lands from his father, Mal Singh. As per the Fard Jamabandi, the assessee was the owner of 63 acres of agricultural lands and for the assessment years 1970-71 and 1971-72 was assessed in respect of the entire land-holdings in his 'Individual' status. The assessee filed a report No. 367 to the Patwari of village Kanjli on 1st May, 2013. S.Y. corresponding to 16th Aug., 1956, in which mutuation was requested in the following terms-an Engl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation in respect of agricultural land-holdings previously standing in the assessee's name was also effected in the assessee's son's name and his grand-sons named as per decree, a copy of which has been furnished to us and is at page 6 of the assessee's compilation. There is no dispute that all these documents were available before the wealth-tax authorities. Since after the mutuation resulting from the declaratory suit, the agricultural land-holdings of the assessee became very small, he filed his wealth-tax return declaring a net wealth of Rs. 1,900 which comprised of agricultural lands to the extent of Rs. 900 and another property Rs. 1,000. The WTO took the view that since for the assessment years 1970-71 and 1971-72 the assessee had bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he immediate or deferred benefit of the assessee or his wife or the minor child. But looking to the other reasons discussed above, I am of the opinion that the assessee continued to be the owner of the agricultural land measuring 302 bighas. In this view of the matter, both the appeals are dismissed ". The AAC held that if the family arrangements could give no title to the assessee's son and grand-sons, the decree of the court dated 21st July, 1971 would not make any difference for the purpose of wealth-tax assessment and the position taken by the WTO for the assessments years 1970-71 and 1971-72 would hold good. The AAC also observed that the purpose of assessee's son and grand-sons going to the court was to get a division in the family ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sikh was governed by the Customary Law and was the absolute owner of the inherited lands. The position has now become crystal clear because of the Full Bench judgment in the case of Pritam Singh vs. ACED (1). The Full Bench has held in questions regarding succession, the law in the Punjab is contained in s. 5 of the Punjab Laws Act, No. IV of 1972. The position that emerges therefrom is that where the parties are Hindus, the Hindu law would apply in the first instance and whosoever assets a custom at variance with Hindu law shall have to prove it. It is undisputed that for the purposes of the Hindu Succession Act, the Sikhs are Hindus and their personal law is the Hindu Law. Consequently, the Hindu law will apply to the Sikh Jats in matters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's son and his grand-sons, the taxability in the hands of the assessee to the extent of alienated land ended. If the assessee, by any stretch of imagination, could be said to be an individual, it could be a case of a gift but the assessments were completely out of range and the WTO and the AAC both fall in error in subjecting the assessee to wealth-tax as has been done in the case. We, however, like to observe that the lands partitioned as per the court decree being ancestral in character, the court's settlement was of the nature of a partition. Viewed from any angle, the accessibility in respect of lands going to the assessee's son and grand-sons cannot be upheld and we hold accordingly. The WTO is directed exclude the value of the lands w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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