9911796707
TMI Blog1984 (1) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... 14th Sept., 1964, 6-45 a.m. Lt. J.P.S. Kapoor left his residence at the Officers' Mess at Ajit Road, Jalandhar on a Scooter PNA 31 and was on his way to attend to his duties in the Unit Office. When he reached the crossing of the Ajit Road, a passenger bus bearing No. 617 of the Punjab Roadways Jalandhar coming from the Nalva Road side and going towards the Noormahal side struck against the Scooter of Lt. Kapoor with the result that he and the Scooter were thrown about 20 feet away. In the process they struck against a pucca culvert. The bus was driven by the Driver of the Punjab Roadways, Shri Chanan Singh. Lt. Kapoor who was so involved in the accident was rendered unconscious. In this condition he was removed to the hospital. He remaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e part of the driver of the bus involved and consequently denied their liability to pay any compensation. The said Tribunal gave its judgment on 28th May, 1968 and awarded a sum of Rs. 3,96,000 as compensation under s. 110-A of the Motor Vehicles Act alongwith cost of the application and counsel' fee of Rs. 750. The Tribunal issued directions that the whole of the amount awarded with costs must be paid by the State of Punjab in the Transport Department, as owners of the bus involved, within a period of three months from the date of award failing which the amount will carry interest at 6 per cent per annum. 5. However, the State of Punjab did not accept this judgment of the Tribunal and did not pay any panny to Lt. Kapoor. On the other ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt orders. The State did not take the matter further to the Supreme Court. 7. In the wealth-tax assessment for the year 1969-70 assessment was framed on 31st July, 1978 on net wealth of Rs. 4,10,151. This net wealth consisted of the following sums: Compensation granted by the Court of Motor Accident Claims Tribunal: Rs. 3,96,000 Interest up to 31st March, 1969: Rs. 14,151 . Rs. 4,10,151 However, this assessment was set aside by the AAC vide his order dt. 27th Nov., 1979 with the directions that the assessment be framed de novo after granting reasonable opportunity to the party. The WTO issued notice subsequently and taking into consideration submissions made before hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 55,562 1972-73 2,96,000 + Intt. 77,366 3,73,366 1973-74 -- + Intt. 89,683 89,683 This order of the AAC has been accepted by the assessee. But the Revenue is in appeal before us with the above projected grievances. 10. Contending on behalf of the Revenue, the ld. senior Department al Representative claimed that the AAC erred in view of the provisions of s. 3 of the Transfer of Property Act and the judgment of the Supreme Court in the case of CIT vs. Chunilal V. Mehta Sons (P) Ltd. (1971) 82 ITR 54 (SC) and another judgment of the Supreme Court in the case of Mrs. Khorshed Shapoor Chenai vs. Asstt. CED (1980) 14 CTR (SC) 356 : (1980) 122 ITR 21 (SC) in allowing to the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt in its entirety. Therefore, it cannot be said that as on 28th May, 1968, Lt. Kapoor was having the sum of Rs. 3,96,000 in the form of asset so as to make it includible in his net wealth for the wealth-tax purposes. This is so because the award of the Tribunal was not final and was subject to further appeal before the High Court. This right of appeal was availed of by the State of Punjab by moving application before the High Court with a prayer for reversal of the order of the lower Court. In such a situation, the entire claim of Lt. Kapoor was in a state of affairs that Lt. Kapoor had the right title and interest in the said sum or any portion there of so as to call it his asset liable to tax under the WT Act. It is pertinent to note th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use once the judgment of the High Court had been accepted, then the directions of the Tribunal in their order of dt. 28th May, 1968 that the amount will carry interest at the rate of 6 per cent per annum if the payment is delayed became operative. Therefore, in the accounting year relevant to the asst. yr. 1973-74 the assessee was entitled to the sum of Rs. 3,96,000 as well as the interest which the WTO brought to tax. 14. We are also of the opinion, in view of what is stated above, that even if the amount of Rs. 1 lakh which was directed to be paid by the Hon'ble High Court in their interim order dt. 16th Sept., 1969, it could not be held as an amount owned or belonging to Lt. Kapoor because it was with certain encumbrances and directio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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