9911796707
TMI Blog1986 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee himself in ITR No. 510 of 1984 and vide our order of even date we have held that no charitable trust had come into being. For the detailed reasons given therein, we do not find any merit in this ground of appeal. 3. The second ground is connected with the first ground and, therefore, it calls for no separate consideration. 4. The third ground is that the amount of enhanced compensation of Rs. 6,07,404 admittedly received on 20th May, 1981 could not form part of the wealth of the assessee as on the valuation date viz 31st March, 1981 relevant to the asst. yr. 1981-82. In the second ground of appeal it is stated that in any case, the enhancement of compensation was in dispute before the High Court which was not free from hazards of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the AAC. The AAC not only confirmed the inclusion of the amount of compensation of Rs. 6,07,404 in the net wealth of the assessee but also enhanced the assessment by further amount of Rs. 8,48,640. The facts relating to enhancement are like this. Apart from enhanced compensation of Rs. 6,07,404 received by the assessee on 20th May, 1981 as a result of the order of the Addl. District Judge dt. 29th April, 1980, the assessee received further enhanced compensation of Rs. 5,48,640 on 19th April, 1982 in pursuance of the order dt. 29th April, 1980 of the Addl. District Judge. This amount was not included by the WTO in the net wealth of the assessee though he had included an amount of Rs. 6,07,404 in the net wealth of the assessee on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04 made by the WTO. 7. It is against these additions of Rs. 6,07,404 and Rs. 8,48,640 that the assessee has come in appeal before the Tribunal. The submission by the ld. counsel for the assessee was that even though the Addl. District Judge had awarded compensation vide his order dt. 29th April, 1980, but it did not become the wealth of the assessee till it was actually received on 20th May, 1981 and 19th April, 1982. He further contended that right to receive enhanced compensation had not crystallised in as much as both the assessee and the Govt. were in appeal before the High Court. He further urged that the judgment of the High Court enhancing the compensation by further amount of Rs. 4,00,268 was much later on 3rd July, 1982 against w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival submissions. The issue stands settled by the Hon'ble Supreme Court in its judgment reported in (1980) 122 ITR 21 (SC) where it has been held that extra compensation, awarded by the civil Court was liable to variation in appeals pending before the High Court and such extra compensation together with the compensation awarded by the Collector could not be regarded as proper valuation of the right to compensation as on the date of the death of the deceased. It has also been held by the Hon'ble Supreme Court that it is the duty of the assessing authority to evaluate the property (the right to receive compensation at market value on the date of the relevant notification) as on the relevant date or the valuation date under the WT Act. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation received as such. The value of the right to receive compensation was to be done taking into consideration the hazards of litigation etc. Till the decision of the High Court in appeals by both the parties was available, the amount of compensation awarded by the Addl. District Judge was in fluid state. It could be fixed at the amount enhanced by the Addl. District Judge or enhanced or even reduced. The High Court has given its judgment on 30th July, 1982 i.e. 16 months after the valuation date being 31st March, 1981. During the course of the hearing of the appeal it was admitted by the ld. counsel for the assessee that no further appeals were filed to the Supreme Court by either of the parties. The amount of compensation has, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fixing the value of right to receive compensation actual dates of payment as also the period of 16 months in reaching finality and hazards of litigation, uncertainty etc. have to be taken into consideration. The AAC has given allowance for such contingencies at Rs. 1,00,268 against the enhanced compensation of Rs. 4,00,268 awarded by the Hon'ble High Court. This, in our opinion, is quite reasonable which is about 25 per cent of the enhanced compensation awarded by the High Court. He has, however, not given any such allowance for the enhanced compensation awarded by the Addl. District Judge. On the same basis we are of the opinion that 25 per cent deduction out of the enhanced compensation awarded by the Addl. District Judge should also be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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