The nature of the land is to be determined in accordance with its use being made on the date of valuation.

, J.

1. The Income-tax Appellate Tribunal (Delhi Bench " B ") has referred the following question of law to this court for opinion along with the statement of the case:

"Whether, on the facts and in the circumstances of the case, the land bearing present Khasra No. 598 (old Khasra No. 434), measuring 25 kanals and 16 marlas, and the land bearing present Khasra Nos. 1058 and 1059 (old Khasra Nos. 1242 and 1243), measuring 24 kanals and 16 marlas, belonging to the applicant are agricultural lands within the meaning of Section 2(e)(i) of the Wealth-tax Act, 1957 ?"

2. This reference relates to assessment years 1962-63 and 1963-64, the relevant valuation dates being March 31, 1962, and March 31, 1963.

3. The facts giving rise to this reference are that for the assessment years 1962-63 and 1963-64 the two plots of land mentioned in the question were included in the wealth of the petitioner and their valuation was determined as rupees one lakh by the Wealth-tax Officer, " A " Ward, Amritsar. The assessee had declared the value of this land as Rs. 9,450. In the appeal, the learned Appellate Assistant Commissioner of Wealth-tax reduced the value of the land on the two valuation dates to Rs. 62,250 and Rs. 82,000, respectively. The assessee filed a further appeal to the Income-tax Appellate Tribunal which reduced the value of the land to Rs 30,000, on both the valuation dates. The contention of the assessee throughout was that the laid was agricultural land and, therefore, could not be included in his wealth for the assessment of wealth-tax. This contention of the assessee was not accepted by any departmental authority, with the result that the present reference has been made to this court.

4. The learned counsel for the assessee has submitted that the land in question was and is agricultural land, assessed to land revenue and is being irrigated by canal water from Jethuwal distributory, which irrigates the agricultural lands situate to the east and north of the assessees land. The land is, thus, claimed to be agricultural arid nehri. It was requisitioned by the Punjab Government in 1946 for the police department and is still in its possession. The compensation which is being paid by the Punjab Government to the assessee is Rs. 78-12-0 per mouth, that is, Rs. 945 per year. It is not disputed that the land was agricultural land till 1946 when the Punjab Government requisitioned it. What is stated on behalf of the revenue is that the land is not being used as agricultural land but as a parade ground by the police authorities so that the nature of the land has to be determined in accordance with its use being made on the date of valuation. It is not denied that grass grows on the land and it is still being irrigated by the Jethuwal distributory. The land is assessed to land revenue, and abiana is also paid for the use of canal water. The assessee thus claims that the land continues to retain its agricultural character which it bore in 1946 before it was requisitioned by the Punjab Government. It is submitted that the compulsory requisition of the land and putting it to any use by the Government does not change the nature and character of the land which continues to be agricultural. On behalf of the revenue, it is vehemently argued that the land has been included in a town planning scheme and is situated within the municipal limits of Amritsar and cannot be said to be agricultural land any more. All these facts are admitted and on these facts we are to decide whether the land is agricultural land which cannot be included in the wealth of the assessee. The learned counsel for the assessee has referred to certain decided cases in support of his submissions, the first one being Megh Raj v. Allah Rakhia, [1942] F.C.R. 53.64; A.I.R. 1942 F.C. 27, 32; [1942] F.L.J. 33, 45. The following observation occurs:

"In this state of the authorities, it seems to us best to refrain from deciding the precise scope of the expression agricultural l