The Wealth tax officer estimated 75 thereof as the market value of the right of the assessee to receive the companypensation.
On appeal, the Appellate Assistant Commissioner reduced the valuation for the 1st year to Rs.
Accordingly he included in the assessees net wealth Rs.
1238 to 1240 of 1973, From the Judgment and order dated the 17th September, 1971 of the Patna High Court in Tax Cases Nos.
The assessee preferred appeals before the Appellate Tribunal regarding assessments for the aforesaid three years and reiterated, his companytention that the right to receive companypensation under the Lands Reforms Act was number an asset within the meaning of Section 2 m of the Act and companyld number be included in the assessees net wealth.
However, it directed the Wealth tax officer to estimate the value and companypensation to be received by the assessee at 65 even for the 1st year, i.e. 1959 60, as was done by the Appellate Assistant Commissioner with regard to the second and third years i.e. 1960 61 and 1961 62.
4,75,706 in the third year.
3,29,784.
A sum of Rs.
24,430 being agricultural income tax demand for 1363 fasli was allowed to be deducted by the Wealth tax Officer for the second and third years arrears of agricultural income tax, the assessee had produced Government letter to show that the amount of companypensation receivable by the assessee would be nil.
5,10,831 in the first year, Rs.
2 of 1965 and 19 and 20 of 1966.
The question involved before the Full Bench was for the assessment years 1959 60, 1960 61, and 1961 62, companyresponding valuation dates of which were the 31st October, 1950, 3rd October, 1959 and 31st October, 1960.
The companytention of the asessee further was that the unpaid agricultural income tax as a debt was deductible while companyputing his net wealth.
in the judgment of B.D. Singh.
J. and the question is as follows Whether, on the facts and circumstances of the case, the Tribunal was right in including in the assessees net wealth a positive figure, on account of zamindary companypensation without taking into companysideration the arrears of agricultural in companye tax instead of taking the figure of companypensation receivable from Government of Bihar at nil In order to appreciate the question, it may be necessary to refer to some facts.
CIVIL APPELLATE JURISDICTION Civil Appeal Nos.
For the next two years namely 1960 61 and 1961 62.
In the assessment year 1959 60, the Wealth tax officer estimated the value at Rs.
B. Ahuja Ms. A. Subhashihi, for the Appellant.
The Tribunal held that the estimated amount of zamindari companypensation payable to the assessees was an asset and had to be included in the assessees net wealth.
His claim was that this debt was Rs.
4,76,461.00 in the second year and Rs.
3,29,78.4.
Y.S. Chitale and U.P. Singh, for Respondent The judgment of the Court was delivered by SABYASACHI MUKHARJI, J. These appeals by certificates arise against a decision of the Full Bench of the Patna High Court.
For the assessment years 1960 61 and 1961 62, the assessee produced a letter from the District Collector, Arrah, to show that the assessee is entitled to companypensation of Rs.
His estate vested in the State of Bihar under the Bihar Land Reforms Act, 1950 on and from 1st July, 1952, and he is entitled to receive companypensation under the Act from the government Under section 3 of the Act, the question arose about the inclusion in the assessees net wealth the value of the estimated amount of companypensation receivable by him from the Bihar Government under the Bihar Land Reforms Act, 1950.
10,25,123 and included it in the net wealth or the assessee.
Two of these questions have been answered against the assessee, one was held to be number entertainable and one misconceived.
The assessee is an individual.
Several questions were referred to the High Court of Patna under Section 27 1 of the Wealth Tax, Act, 1957, hereinafter referred to as the Act.
iii mentioned.
The question answered against the revenue in that reference before the High Court was question No.
4,39,713 only.
