9911796707
TMI Blog2003 (3) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... 1970 and the possession was taken over by the Government in 1973. The business of the firm, M/s. Varkey Jacob and Co., came to an end with the acquisition of the said estate. In the present case, we are concerned with the assessment of the appellant under the Act for the year 1986-87. The appellant filed a return of wealth for the assessment year 1986-87 on October 23, 1990. In the said return, the assessee had shown the value of right to receive enhanced compensation and interest in respect of the appellant's right on the acquired property at Rs. 10,82,015. Later, the assessee filed a revised return in which the right to receive enhanced compensation and interest was shown only at Rs. 3,31,758. Here, it is relevant to note that in the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of the Tribunal, the assessee is in appeal. Shri N. Sreenivasan, senior counsel appearing for the appellant, submits that the relevant date for valuation of the assets is the valuation date in respect of the concerned assessment year, that on the valuation date, the only decision that was available was the decision of the sub-court which has awarded interest at 4 per cent., apart from the compensation fixed and that the said award was also subject to appeal by the Department and by the assessee before this court. Senior counsel therefore, submitted that in view of this nebulous situation, particularly in view of the fact that the very question of entitlement of interest under the Land Acquisition Amendment Act, 1984 was doubtf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as representing the right to receive interest. Senior counsel further submits that both the appellate authorities have rightly upheld the order of the Assessing Officer. We have considered the rival submissions. The assessment year concerned is 1986-87. The relevant valuation date is March 31, 1986. As on that date, there was only the award of the sub-court in which only 4 per cent. interest was awarded on the compensation amount. The decision of the High Court in the appeal was rendered only on January 28, 1987, after the valuation date. Section 3 which is the charging section, sub-section (1) thereof reads as follows: "3. Charge of wealth-tax.-(1) Subject to the other provisions (including provisions for the levy of additional wealth-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided under the Land Acquisition (Amendment) Act, 1984, which was pending as on the valuation date. In the above circumstances, the appellant was certainly obliged to estimate the net wealth as on the valuation date. The expression "net wealth" as defined means the amount by which the aggregate value computed in accordance with the provisions of this Act of all the assets belonging to the assessee on the valuation date is in excess of the aggregate value of all the debts owed by the assessee on the valuation date. The computation of the value of assets is provided under section 7 of the Act, which in turn refers to Schedule 3. It is unnecessary for us to go into the provisions of section 7 or Schedule 3 in detail, since it is the market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the question of reasonableness of the valuation made by the appellant and to take a decision with reference to the fact situation, and the provisions of the Land Acquisition (Amendment) Act, 1984, under which enhanced interest was provided. In other words, it was for the Assessing Officer to consider whether, in law, the appellant was entitled to get enhanced interest at the rate of 15 per cent. provided under the amended Act in respect of an acquisition made in 1970 and possession taken in 1973. As we have already noted, the Assessing Officer had straightaway adopted 90 per cent. of the interest awarded by the High Court as the right to receive interest on the valuation date. Probably, the 10 per cent. reduction was made on account of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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