Section 38. Assessment on holdings.

(1) The settlement officer shall calculate the assessment on each holding in accordance with the revenue-rates confirmed and finally published under section 34 and such assessment shall be the fair assessment. (2) The settlement officer shall have the power to make fair assessment on all lands whatsoever to which the revenue survey extends, whether such lands are held with liability to pay full land revenue or land revenue at concessional rates or are held revenue-free. (3) The fair assessment of all lands shall be calculated in accordance with rules made in this behalf and having regard to the following principles, namely:-- (a) no regard shall be had to any claim to hold land on privileged terms; (b) regard shall be had in the case of agricultural land to the profits of agriculture, to the consideration paid for leases to the sale prices of land and to the principal monies on mortgages, and in the case of non-agricultural land, to the value of the land for the purpose for which it is held; (c) where any improvement has been effected at any time in any holding held for the purpose of agriculture by or at the expense of the holder thereof, the fair assessment of such holding shall be fixed as if the improvement had not been made.