9911796707
TMI Blog1983 (8) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, therefore, an asset and consequently 'property' under s. 2 (e) and 2(m) ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the contingent right to enhanced compensation accrued to the petitioner from the very date of taking possession of the land by the Government on February 26, 1965, and, therefore, an asset on the relevant valuation date; viz., March 31, 1974, contrary to the fact that the High Court awarded a decree on April 26, 1977, against which the State Government filed an application for grant of special leave to appeal and the Supreme Court dismissing the same on April 10, 1978 and, consequently, the right being non-existent on the relevant valuation date, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Land Acquisition Act, 1894. On acquisition of that land, the Collector had awarded compensation of Rs. 1,48,000, but on October 16, 1966, the District judge, Ratlam, on a reference under s. 18 of the Land Acquisition Act, 1894, enhanced the compensation to Rs. 17,85,396. On appeal by the State, the High Court, by its judgment dated April 26, 1977, determined the amount of compensation at Rs.11,11,590 and the amount of solatium at Rs. 1,66,738. The High Court further held that the assessee would be entitled to interest at the rate of 6% per annum on the total amount of compensation from the date of delivery of possession till realisation. Leave to appeal submitted by the State before the Supreme Court was rejected. While framing assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remanded the matter to the WTO with the direction that he should first consider the applicability of the provisions of rule IBB of the W.T. Rules and then decide the matter according to law. Regarding addition of enhanced compensation to the net wealth of the assessee, the Tribunal observed as follows: " So far as the addition of the enhanced compensation to the net wealth of the assessee is concerned, we have noted that the possession of this land was taken by the Government on February 26, 1965, and the date of valuation in this case is March 31, 1974. So far as the taxability of the right to receive the enhanced compensation is concerned, their Lordships of the Supreme Court in the case of Pandit Lakshmi Kant Jha v. CWT [1973] 90 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been referred to this court for its opinion. Now, as regards question No. 1, the matter, in our opinion, is concluded by the decision of the Supreme Court in Pandit Lakshmi Kant Jha v. CWT [1973] 90 ITR 97. In that case, it has been held by the Supreme Court that the right to receive compensation from the State is a valuable right, more so when it is based upon statute and even though the date of payment is deferred, the right to receive compensation is property and constitutes an asset for the purpose of the W.T. Act. In view of this decision, our answer to question No. 1 referred to this court by the Tribunal is in the affirmative and against the assessee. Regarding question No. 2, that question does not bring out the real issue bet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that property (right to receive compensation at market value on the date of relevant notification) as on the relevant date. In this case, the assessing authority had not evaluated the right of the assessee as on the relevant date, i.e., March 31, 1974. The Tribunal, therefore, was not justified in confirming the market value of the property as on March 31, 1974, at Rs. 11,91,047 as determined by the WTO. As already observed, the assessing authority has to evaluate that property in the light of the decision of the Supreme Court in Khorshed's case [1980] 122 ITR 21. Our answer to question No. 3, therefore, is in the negative and in favour of the assessee. As regards question No. 4, that question, in our opinion, does not really arise out ..... X X X X Extracts X X X X X X X X Extracts X X X X
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