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Issues:
1. Determining if additional compensation awarded in a land acquisition case constitutes an asset for Wealth-tax Act valuation. 2. Assessing the value of the asset considering litigation hazards and incidental costs. Analysis: The judgment by the High Court of Kerala addresses the issue of whether extra compensation awarded in a land acquisition case should be considered an asset for Wealth-tax Act valuation. The court refers to Supreme Court decisions in Pandit Lakshmi Kant Jha v. CWT and Khorshed Shapoor Chenai v. Asst. CED to establish the principle that the right to receive compensation, even if not quantified by the valuation date, is a valuable right and constitutes an asset. The court emphasizes that the value of the asset should consider the peculiar nature of the property, its marketability, and any litigation risks. The judgment highlights that the entire amount of compensation may not be included in the asset value, and litigation expenses incurred to obtain the compensation should be deducted. Regarding the specific case at hand, where the assessee received additional compensation of Rs. 94,329, the court determines that while the compensation would form part of the asset held by the assessee, the entire amount cannot be considered for Wealth-tax Act valuation. The judgment underscores the need to deduct litigation costs and other incidental expenses before arriving at the value of the assets. The court directs the Tribunal to consider these factors in assessing the value of the asset and to dispose of the matter accordingly. In conclusion, the court answers the reframed question regarding the inclusion of the additional compensation as an asset in the negative, favoring the assessee. However, the court rules against the assessee on the second question, emphasizing that the compensation awarded should be part of the asset but considering deductions for litigation hazards and incidental costs. The Tribunal is instructed to proceed based on the court's observations and in compliance with the law, as outlined in the judgment.
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