Constitution of India, 1950, Arts. 246, 248, List I, Seventh Schedule, entries 86 and 97, and List II, entry 49-Scope of Enquiry into scope of residuary powers-Nature of 'Any other matter in entry 97, meaning of.

Wealth Tax Act, 1957, as amended by s. 24, Finance Act, 1969- C Competency of Parliament to enact-It falls under entry 49, List II.

Section 3 of the Wealth Tax Act, 1957, imposes a tax on the capital value of the net wealth of an assessee. Net wealth, under the Act, is the amount by which the aggregate value of all assets of the assessee, computed in the manner provided by the Act, is in excess of the aggregate value of all debts (subject to some exceptions) owed by the assessee; and assets, under s. 2(e) as it originally stood, meant generally property of every description but not including agricultural land, growing crops, grass or standing trees on such land. Section 24 of the Finance Act, 1969, amend- ed. s. 2(e) of the Wealth Tax Act and included agricultural land etc., in the assessee's assets for the purpose of computing his net wealth.

The High Court held that the amendment was beyond the legislative competence of Parliament.

 In appeal to this Court, on the questions: (1) whether such a tax on agricultural land could be imposed only by the States under entry 49, List II, Seventh Schedule to the Constitution, dealing with 'taxes on lands and buildings'; and (2) whether the object of specifically excluding agricultural land from the scope of entry 86, List I, was also to take it out of the ambit of entry 97, List I, and Art. 248, dealing with residuary powers of Parliament.