Harbans Singh, J.

1. This order will dispose of two writ petitions, one filed by the State of Punjab (C. W. 2291 of 1970) and the other by a private person (C. W. 2673 of 1970), challenging the validity of Section 24 of the Finance Act, 1969 , so far as the same amended relevant provision of Wealth Tax Act, 1957 , and included the capital value of agricultural land in computing the total assets on which wealth tax is payable.

2. The Wealth-Tax Act, 1957, (Act No. 27 of 1957) was passed by the Parliament in September 1957 imposing tax on the "net wealth" on the corresponding valuation date of every individual, Hindu undivided family and company. Clause (m) of Section 2 defined "net wealth". Relevant part of the definition necessary for the purpose of the controversy before us is as follows:-

"net wealth" means the amount by which the aggregate value computed in accordance with the provisions of this Act on all the assets, wherever located, belonging to the assessee on the valuation date ...., is in excess of the aggregate value of all the debts owed by the assessee on the valuation date, ...."

3. The definition of "assets" given in Section 2(e) as it existed prior to the amendment made by the Finance Act, 1969 , was as follows:-

"assets includes property of every description, movable or immovable but does not include- (i) agricultural land and growing crops, grass or standing trees on such land;

(ii) ............".

Charging Section is section 3. Section 4 enumerates certain items of assets which are to be included in the "net wealth". Section 5 provides certain exemptions with which we are not concerned. Section 14 provides for the filing of return by a person whose net wealth on the valuation date was of such an amount as to render him liable to wealth tax under this Act. This return is to be filed "before the thirtieth day of June of the corresponding assessment year". Section 18 provides for the penalty for failure to furnish the return without any reasonable cause and for furnishing an incorrect return. This Act, prior to the amendment made by the Finance Act, 1969 , therefore, excluded altogether agricultural land from being included in the assets of a person for the purposes of the tax. Section 2(e) which inter alia excluded agricultural land from the definition of "assets" for the purpose of the Wealth-Tax Act was amended by Section 24 of the Finance Act, 1969 , and for the assessment year commencing on the 1st of April, 1970, and for all subsequent assessment years. The exclusion of agricultural land was omitted. This the assets for the purpose for computing the net wealth after the aforesaid amendment, came to include the agricultural land as well. Exemption of agricultural land to a certain extent was provided for by making an amendment in Section 5 but we are not concerned with that.

4. The time for filing of return for the assessment year commencing on 1st April, 1970, which return for the first time would have to include the agricultural land amongst the assets of a person, was extended from time to time and the last date now fixed is 30th of September, 1970. The two writ petitions have been filed for challenging the competence of the Parliament to make the amendment so as to include agricultural land in computing the net wealth of a person for the purpose of computing tax. In both these writ petitions the validity has been challenged on two grounds. The first ground is that agricultural land is included in Entry 49, List II in the Seventh Schedule of the Constitution known as the State List and such a tax could be imposed only by the State Government and not by the Union Government. In the writ petition filed by the State of Punjab the point has been specifically been taken that the Parliament by the impugned amendment has encroached upon the sphere of the State Legislatures. The second line of attack is that in any case, even if the tax is not covered by Entry 49, aforesaid, the Parliament is not authoris