1987 (8) TMI 44

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nder the Wealth-tax Act raise a common issue for consideration. It would, therefore, be convenient to dispose of them together. Learned counsel for the assessee dealt with the reference in R. C. No. 298 of 1982 and stipulated that the decision in this reference would govern the other references also. We shall, therefore, deal with the questions referred to us in R. C. No. 298 of 1982. The follo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o is that the compensation receivable in respect of lands acquired partakes or the nature of an agricultural asset and cannot, therefore, be included in the net wealth of the assessee. It is not denied that on the valuation date corresponding to the assessment year 1968-69 under consideration, the lands acquired were taken possession of and consequently they vested in the Government. In view of th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... for the assessee contends that the compensation receivable is merely a substitute for the agricultural land compulsorily acquired by the Government and, consequently, the character of the compensation receivable is synonymous with the character of the agricultural land itself which was the subject-matter of acquisition. We are unable to agree. The agricultural land, so far as the assessee is conce .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... certainable and consequently until the matter becomes final, it should be treated on par with an agricultural asset. The hazard, if any, in the amount of compensation receivable may be relevant for purposes of valuation but has no relevance whatsoever in determining the character of the asset. We, therefore, find that the Tribunal was justified in holding that the right to receive compensation in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he tenant to whom the agricultural lands were leased out. The sum total of the cist receivable which was in arrear on the valuation date certainly constitutes a non-agricultural asset for the purpose of assessment. We hold that the Tribunal is justified in coming to the conclusion that the cist receivable also is a nonagricultural asset. We accordingly answer question No. 2 also in the affirmative .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X