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Issues:
1. Contingent right to claim enhanced compensation as an asset under the W.T. Act, 1957. 2. Timing of recognizing contingent right to enhanced compensation as an asset. 3. Valuation of enhanced compensation and application of rule IBB. 4. Valuation of 'Durga Jyoti' palace and applicability of rule IBB. Analysis: Issue 1: The Tribunal questioned whether the contingent right to claim enhanced compensation is a valuable asset under the W.T. Act, 1957. The High Court referred to the Supreme Court's decision in Pandit Lakshmi Kant Jha v. CWT, affirming that such a right is indeed an asset for the purpose of the Act. The court answered in the affirmative against the assessee. Issue 2: The Tribunal raised concerns about recognizing the right to enhanced compensation as an asset on March 31, 1974, despite the final determination by the High Court on April 26, 1977. Citing the Supreme Court's precedent in Pandit Lakshmi Kant Jha's case, the High Court held that the right becomes vested upon divestment of the estate, justifying the Tribunal's decision. The answer was in the affirmative against the assessee. Issue 3: Regarding the valuation of enhanced compensation, the High Court referred to the Supreme Court's ruling in Khorshed Shapoor Chenai v. Asst. CED, emphasizing the need to evaluate the property at market value on the relevant date. The court found the Tribunal unjustified in confirming the market value determined by the WTO, directing a reevaluation in line with the Supreme Court's decision. The answer was negative and in favor of the assessee. Issue 4: The Tribunal's query on the valuation of 'Durga Jyoti' palace and the applicability of rule IBB was deemed not arising from the Tribunal's order by the High Court. The court highlighted that the Tribunal had not set aside the finding regarding the valuation, leading to the decision to decline answering this question. In conclusion, the High Court provided a detailed analysis of each issue raised by the Tribunal, relying on relevant legal precedents to determine the outcomes. The judgment clarified the treatment of contingent rights as assets, the timing of recognition, the valuation process, and the applicability of specific rules, ensuring a comprehensive resolution of the legal questions at hand.
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