BAL RAJ TULI, J. - (1.) THIS petition under Articles 226 and 227 of the Constitution of India came up for hearing before a Division Bench of this court on November 15, 1973, and was referred to a larger Bench of at least five judges to decide the following points of law, which, the learned judges thought, raised very important and fundamental questions : " (1) Whether the rate of wealth-tax imposed on urban immovable property is of a confiscatory nature ? and (2) Whether the penalty provisions as embodied in Section 18 of Wealth-tax Act, are also confiscatory in nature ?"
(2.) ANOTHER contention that had been raised in the writ petition was that no wealth-tax could be imposed on agricultural land. That matter stands concluded by the decision of their Lordships of the Supreme Court in Union of India v. Harbhajan Singh Dhillon, [1972] 83 ITR 582 (SC) and, therefore, was not referred to the larger Bench. The learned counsel for the petitioner has not pressed question No. 2 mentioned above before us and has confined his arguments only to the following question: That the rate of additional wealth-tax imposed on urban assets is discriminatory and confiscatory and thus violative of Articles 14 and 19 (1) (f) of the Constitution.
(3.) THE petitioner, Colonel His Highness Raja Sir Harinder Singh Brar Bans Bahadur, Ruler of the former Faridkot State, owns various kinds of property mentioned in the petition. The year of assessment is 1970-71 and the valuation date is April 12, 1970--Chet 30, 2026 BK, For that year, the rate of wealth-tax in the case of every individual was as under : " (a) Where the net wealth does Nil not exceed Rs. 1,00,000. (b) Where the net wealth exceeds Rs. 1,00,000 but does not exceed Rs. 5. 00, 000 (c) Where the net wealth exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 (d) Where the net wealth exceeds Rs. 10,00,000 but does not exceed Rs. 15,00,000 (e) Where the net wealth exceeds Rs. 15,00,000 but does not exceed Rs. 20,00,000. (f) Where the net wealth exceeds Rs. 20,00,000 1 per cent, of the amount by which the net wealth exceeds Rs. 1,00,000 ; Rs. 4,000 plus 2 per cent, of the amount by which the net wealth exceeds Rs. 5,00,000 ; Rs. 14,000 plus 3 per cent. of the amount by which the net wealth exceeds Rs. 10,00,000 ; Rs. 29,000 plus 4 per cent. of the amount by which the net wealth exceeds Rs. 15,00,000; Rs. 49,000 plus 5 per cent. of the amount by which the net wealth exceeds Rs. 20,00,000. ;