9911796707
TMI Blog1980 (9) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... nds in respect of some of the minor additions. 4. There are 12 items of properties. Objections were raised to enhancement in respect of items Nos. 5, 7, 8 10. In respect of items 5 and 7, being properties situated in Ambalathadi Chetty Street, Dharmapuri, the values were raised from Rs. 50,000 to Rs. 55,000 each. The revision, which was confirmed by the first appellate authority, was not pressed before us. Even otherwise we find that there is no firm basis for the returned value and hence we have to confirm the marginal increase made by the assessing authority. 5. In respect of item No. 8, which is a property at Salai Vinayakar Street, Dharmapuri, the value returned was Rs. 1,00,605 while it was valued by the assessing authority at Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the immediately three preceding years, the value was Rs. 94,000. This was now increased by Rs. 10,000. We are not prepared to hold that the rent payable by the husband to a wife is such a rigid index of the value so as to find the ITO to be in error to hold that the capital value is constant. The ITO has been quite reasonable and we do not propose to interfere with the valuation adopted by him. Hence all the enhancements in valuation in respect of the four properties are confirmed. 7. The only other dispute relates to the claim for exemption in respect of the lands taken over by the State Govt. as being in excess of the ceiling prescribed under the Madras Land Reforms (Fixation of Ceiling on land) Act, 1961 as amended from time to tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 1961 and rules framed thereunder. The amount of compensation was as per the statute. Once the bond was issued, it was contended that it has retrospective effect of being Govt. bonds on the relevant valuation date. The AAC was unable to accept this argument. He wrongly assumed that the amount was taken by the WTO as value of the agricultural lands and since the appellant was not in possession of the Govt. bonds, he justified the assessment. The appellant has, therefore, come up in Second appeal. 8. Both the representative for the appellant as well as the Department reiterated their respective positions. 9. We have carefully considered the facts and the arguments relating to the claim for exemption on an amount of Rs. 1,16,700. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be prescribed. The interest shall be paid (i) in the case of any land held by any person referred to in cl. (a) or (b) of sub-s. (5) of s. 18 w.e.f. the date of the publication of the notification under sub-s. (1) s. 18; and (ii) in any other case, with effect form the date of taking possession of the land under sub-s (4) of s. 18. It is seen that the amount is payable either in cash or in bonds, or partly in cash or partly in bonds "as the Government may deem fit". We are of the view that this provision settles the dispute. The right to compensation cannot be taken as bonds. As on the valuation date it was receivable either in cash or in bonds. The doctrine of relating back the Govt. bonds to any date earlier than the date of issue, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of Mrs. Khorshed Shapoor Chenai vs. Asstt. CED (1980) 14 CTR (SC) 336 : (1980) 122 ITR 21 (SC), where it was held that a similar right under the Land Acquisition Act., 1894, had to be valued with reference to the market value of the right to receive the compensation as on that valuation date. It was pointed out that a reasonable value has to be estimated with reference to the peculiar nature of the property (i.e., right to receive compensation), its marketability and the surrounding circumstances including the risk or hazard of litigation looming large at the relevant date. We are satisfied that though the hazard of litigation in this case was not much, the possibility of delay in receipt of the compensation and the further ..... X X X X Extracts X X X X X X X X Extracts X X X X
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