9911796707
TMI Blog2003 (3) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided the issue merely on basis of subsequent decision of this court, fixing the interest on the compensation amount – Matter requires reconsideration - - - - - Dated:- 17-3-2003 - Judge(s) : G. SIVARAJAN., J. M. JAMES. JUDGMENT The judgment of the court was delivered by G. SIVARAJAN J.-The matter arises under the Wealth-tax Act, 1957, for short ("the Act"). The assessee under the Act is the appellant. He was a partner in a firm styled as M/s. Varkey Jacob and Co., which took on lease the estate styled as Velanikkara Thattil Estate to the extent of 1/3rd share in the said estate. The said estate belonged to the mother of the appellant. The State Government acquired the estate in the year 1970 and the possession was taken over by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 per cent. of the accrued interest as per the judgment of the High Court. The appellant, being aggrieved by the said judgment, filed appeal before the Commissioner of Income-tax (Appeals), who by his order dated September 23, 1998, upheld the adoption of the interest based on the decision of the High Court. In further appeal by the assessee, the Tribunal confirmed the order of the two authorities holding that since the assessee had filed the return on October 23, 1990, that is much after the decision of the High Court rendered on January, 1987, there was no risk factor as claimed by the assessee to offer only 50 per cent. of the enhanced compensation and interest thereon at 15 per cent. It is against the order of the Tribunal, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overnment standing counsel for Taxes, appearing for the respondent, submits that in the instant case, the appellant had filed the return for the assessment year 1986-87 only after the judgment of the High Court in the land acquisition appeals filed by the Department and by the assessee, that in the said judgment, this court has awarded interest at the rate of 15 per cent. on the compensation as provided under the Land Acquisition (Amendment) Act, 1984, and therefore, the stand of the appellant that the correct figure was not available as on the valuation date was not justified. Senior counsel also submitted that the Assessing Officer has adopted only 90 per cent. of the interest awarded by this court as representing the right to receive int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a right to receive compensation and interest as per the award of the sub-court, of course, subject to appeal, either by the appellant or by the State. The right to receive compensation and interest accrued as per the judgment of the sub-court is an asset within the meaning of section 2(e) of the Act. The second question is regarding the valuation of the net wealth on the corresponding valuation date, that is on March 31, 1986. As already noted, as on that date, there was only the award of the sub-court under which 4 per cent. interest was awarded. However, the appellant and other owners of the estate have filed a cross appeal against the award of the sub-court claiming enhanced compensation and interest provided under the Land Acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the market value of the asset, viz., the right to receive interest has to be ascertained with reference to the valuation date, that is March 31, 1986, the appellant had estimated the right to receive interest at 50 per cent. of the interest awarded by this court in the judgment rendered in January, 1987. However, the appellant had chosen to file a revised return under which the appellant had shown the interest only at the rate of 4 per cent. of the award passed by the sub-court. In these circumstances, particularly, having regard to the fact that on the crucial date, i.e., the valuation date, the award passed by this court was not available, certainly, it was for the Assessing Officer to consider the question of reasonableness of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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