TMI Blog1970 (2) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing question : "Whether, on the facts and in the circumstances of the case, the assessment for the assessment year 1957-58 of the market value of the bonds of the face value of Rs. 26,27,300 is right in law having regard to the provisions of section 2(e) of the Wealth-tax Act, 1957, and the provisions of the U. P. Zamindari Abolition and Land Reforms Act, 1951?" The assessee, Maharaja Pateshwari Prasad Singh of Balrampur, owned extensive estates in the State of Uttar Pradesh. On the abolition of zamindari under the U. P. Zamindari Abolition and Land Reforms Act his proprietary rights as an intermediary in the estates ceased and vested in the State of Uttar Pradesh and he became entitled under the Act to compensation. The compensati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date, what arose for valuation was the right accruing to the assessee to compensation under the U.P. Zamindari Abolition and Land Reforms Act, on the abolition of his estate on July 1, 1952, and that right to compensation fell to be valued as on the valuation date and was represented by the market value of the compensation bonds. The Appellate Tribunal reversed the finding of the Appellate Commissioner and restored the amount included by the Wealth-tax Officer. At the instance of the assessee, the Appellate Tribunal has now made the present reference. The question which the Appellate Tribunal has referred is in substance whether the market value of the compensation bonds of the face value of Rs. 26,27,300 could be included in the total a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arket the Wealth-tax Officer was justified in taking the rate quoted as the market rate for the purpose of valuing the compensation bonds already received by the assessee. In respect of compensation bonds not yet received by the assessee, the assessee was entitled to receive those compensation bonds by virtue of section 27 of the Act and it is that right which fell to be valued on the valuation date. In our opinion, the market value of the compensation bonds of the face value of Rs. 26,27,300 in so far as it represented the value of the assessee's right to those bonds was includible for the purpose of wealth-tax for the assessment year 1957-58. The question has been considered by a number of courts in this country wherever estates of inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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