Circular No. 78

What this is

Circular No. 78 was issued by the Central Board of Direct Taxes on 17 February 1972. Its subject is 1399. Extension of time for filing returns in the cases of per­sons owning agricultural lands for assessment years 1970-71 and 1971-72 up to February 29, 1972.

This is an extension of time. It moves a date that the Act or the Rules otherwise fix, and it does so only for the compliance and the period it names — not for anything else that happens to fall due at the same time.

What it does

Circulates a press note of 21 January 1972 by which the time for filing voluntary returns of wealth for assessment years 1970-71 and 1971-72 was generally extended to the end of February 1972 for persons owning agricultural lands or other assets related to them. Agricultural lands and some related assets had been brought within the Wealth-tax Act, 1957 with effect from 1 April 1970, and individuals and Hindu undivided families with taxable wealth must file voluntarily by 30 June of the assessment year. The extension was given so that owners could have their agricultural assets properly valued by qualified valuers, and it applies equally where notices calling for returns of wealth had already been issued or were issued thereafter. Commissioners are asked to have the press note translated into regional languages and released, and to bring it to the notice of all Wealth-tax Officers.

Why it was issued

The provision bringing agricultural land within the Wealth-tax Act had been held intra vires by the Supreme Court on 21 October 1971 in Union of India v. H.S. Dhillon, and owners then needed time to have their agricultural assets valued by qualified valuers before filing.

Who it reaches

• Individuals and Hindu undivided families owning agricultural land liable to wealth-tax
• Persons who had already received notices calling for returns of wealth
• Wealth-tax Officers dealing with the 1970-71 and 1971-72 returns

The instrument, as the Board published it

1399. Extension of time for filing returns in the cases of per­sons owning agricultural lands for assessment years 1970-71 and 1971-72 up to February 29, 1972
1. Attention of the Commissioners is invited to the enclosed handout issued by the Board to the Press Note on 21-1-1972 [printed here as Annex] under which general extension of time for filing the returns of wealth in the cases of persons owning agricultural lands or other assets related thereto has been allowed up to the end of February 1972, for the assessment years 1970-71 and 1971-72. The Board desire that the Commissioners may kindly get in touch with the Regional Press Information Officers and request them to get the handout translated into regional languages and released to regional language papers. If they find that the handout has not been given adequate publicity they may request the Press Information Officer after a fortnight to repeat the release to the regional language papers.
2. The handout may kindly be brought to the notice of all the Wealth-tax Officers in your charge.
Circular: No. 78 [F.No. 328/11/72-WT], dated 17-2-1972.
ANNEX - PRESS NOTE, DATED 21-1-1972 REFERRED TO IN CLARIFICATION
1. Agricultural lands and some related assets have been brought within the purview of the Wealth-tax Act, 1957, with effect from April 1, 1970. Individuals and Hindu undivided families having wealth liable to wealth-tax are required under the Wealth-tax Act to furnish returns of wealth, voluntarily by June 30, of the relevant assessment year.
2. The relevant provision of the Act has been held to be intra vires the Constitution by the Supreme Court vide their judgment October 21, 1971, in the case of Union of India v. H.S. Dhillon [CA No. 1272 of 1970]. In order to enable persons owning agricul­tural lands or other assets related thereto, liable to wealth-tax, to have their agricultural assets valued properly by quali­fied valuers from furnishing their returns of wealth during the current year, the Central Government have decided to allow a general extension of time for filing voluntary returns for the assessment years 1970-71 and 1971-72, such persons, till the end of February 1972. Extension of time up to the end of February 1972 will also be allowed in the cases of persons owning agricul­tural lands or other assets related thereto, where notices call­ing for returns of wealth have already been issued to taxpayers or are issued hereafter.

What to watch

• This is a Wealth-tax Act circular, issued from a wealth-tax file, not an income-tax circular.
• It is a one-time extension whose date, 29 February 1972, has long passed.
• It covers only persons owning agricultural lands or assets related to them, not wealth-tax assessees generally.
• The Supreme Court decision is named in the press note itself, which is why it appears here.

Where you meet it

Only in an old wealth-tax matter about the timeliness of a 1970-71 or 1971-72 return of an agricultural landowner.

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