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TMI Blog2001 (1) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... 490/Bang/90 for the assessment years 1977-78 to 1985-86, have been referred by the ITAT to High Court under section 256(1). 4. Further, the CWT(A) failed to appreciate that for the purpose of wealth-tax, the value of an asset should be taken at the prevailing market value as on the valuation date. 5. For these and such other grounds that may be urged at the time of hearing, it is prayed that the order of the CWT(A) may be set aside and that of the Assessing Officer restored. 6. The appellant craves leave to add, to alter, amend and/or delete any of the grounds on or before the hearing of the appeal.' 3. The cross objections filed by the assessee are as under: '1. The order of the CWT(A) - so far as it is against the appellant is against law, facts of the case and weight of evidence. 2. The learned CWT(A) has erred to concluding the right to receive compensation from Government of Karnataka under Urban Land Ceiling and Regulation Act is a 'Taxable Wealth'. 3. The grounds of appeal filed before CWT(A) be read as part and parcel hereof. 4. The appellant pray that she may be permitted to adduce further evidence at the time of hearing of this cross objection.' 4. As c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85). 7. We have considered the rival submissions and the evidence on record. We find that the land in question comes under the Urban Land Ceiling and Regulation Act, 1976 and the amount of compensation receivable from the Government on acquisition, and the very acquisition of the land in question under the said Act are pending litigation before the Hon'ble Karnataka High Court/Hon'ble Supreme Court in cases involving the members of the royal family of late Shri J.C. Wodeyar. However, at present, it is clear that as against the original amount assessed by the Assessing Officer of Rs. 6,83,40,900 in respect of the each of the present assessees, the amount receivable by them under the ULCR Act comes to Rs. 2 lakhs only. In view of this position, it is found that the ITAT, Bangalore Bench in WTA Nos. 39 to 41 /Bang/93, dated 31-8-1998 in the case of ACWT v. Smt. Indrakshidevi for the assessment years 1988-89 to 1990-9 1, held that the maximum compensation amounting,to Rs. 2 lakhs only was assessable in the net wealth of the assessee. Similar decision has been rendered in respect of other members of the royal family with regard to the maximum amount of compensation receivable. Since t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the assessment year commencing on the 1st day of April, 1982), this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely: '(i) (a) agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation; (b) any building owned or occupied by a cultivator of, or receiver of rent or revenue out of, agricultural land other than land comprised in any tea, coffee, rubber or cardamom plantation: Provided that the building is on or in the immediate vicinity of the land and is a building which the cultivator or the receiver of the rent or revenue by reason of his connection with the land requires as a dwelling-house or a store-house or an out-house; (c) animals,': Provided further that in relation to the assessment year commencing on the 1st day of April, 1983 or any subsequent assessment year, this sub-clause shall have effect subject to the modification that for item (i) thereof, the following item shall be substituted, namely : "(i) (a) agricultural land and growing crops (including fruits on trees), grass or standing trees on such land; (b) one building or one group of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments made of gold, silver, platinum or any other precious metal or any alloy containing one or more of such precious metals, whether or not containing any precious or semi-precious stones, and whether or not worked or sewn into any wearing apparel; (ii) precious or semi-precious stones, whether or not set in any furniture, utensils or other article or worked or sewn into any wearing apparel; (b) 'urban land' means land situate - (i) in any area which is comprised within the jurisdiction of a municipality (whether known as a municipality , municipal corporation, notified area committee, town area committee, town committee, or by any other name) or a cantonment board and which has a population of not less than ten thousand according to the last preceding census of which the relevant figures have been published before the valuation date; or (ii) in any area within such distance, not being more than eight kilometres from the local limits of any municipality or cantonment board referred to in sub-clause (i), as the Central Government may, having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation (b) of section 2(ea) of the WT Act, 1957 as applicable for the assessment years 1993-94 onwards. Inasmuch as the land in question does not come within the purview of taxable wealth for the assessment years under consideration before us, we hold that the value of the said land cannot be brought to tax for these assessment years. 10. With regard to assessability of a sum of Rs. 2 lakhs, it is clear that the said amount cannot be brought to tax because the right to receive the said amount is not an asset coming within the definition of assets as applicable for the assessment year 1993-94 onwards. Sub-clause (vi) of section 2(ea) only mentions 'cash in hand' and this term obviously does not include ,amount receivable'. In this view of the matter, we hold that even the amount of Rs. 2 lakhs is not assessable as part of net wealth of the assessee for the assessment years in question, unless it is proved that it is part of cash in hand with the assessee. Obviously, such an amount will be assessable to wealth-tax in the year in which the assessee actually receives the amount when it will become part of the cash in hand or get invested in a taxable asset for the relevant year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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