TMI Blog1992 (6) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Wealth-tax Act, in W.T.A. Nos. 283 to 290 (Coch.)/82 relating to the assessment years 1971-72 to 1978-79 :--- Common questions in R.A. Nos. 194 to 201 (Coch.)/91: 1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding/directing deduction of a margin of 25% from the total value of the compensation and should not the Tribunal have confined the deduction only from out of the enhanced compensation ? 2. Whether, on the facts and in the circumstances of the case, the manner and method of valuing " the market value of the assessee's right to receive compensation " is right in law and fact ? 3. Whether, on the facts and in the circumstances of the case, should not the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Executor Trustees Agency Co. of South Australia Ltd. 74 CLR 358, ultimately held as follows : (a) The market value of the property acquired should be ascertained for the assessment year 1970-71 as the assessee was the owner of the property ; (b) For and from the assessment year 1971-72, the assessee had only the right to receive compensation; such rights should be evaluated by applying the present value technique ; (c) The value of the right to receive compensation cannot be less than the compensation awarded by the Collector, and (d) Appropriate allowance should be given for the risks and uncertainties and other hazards of litigation. The appeals thus got restored to the Tribunal. The assessee filed a paper book showing how t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1974-75, the valuation date is 31-3-1974. By that time, the compensation was awarded by the Collector on 15-3-1974. Such compensation was paid to the assessee on 28-6-1974 barely after a period of three months. Therefore, the Tribunal felt that it was not necessary to ascertain the present value of the initial compensation as fixed by the Collector on 15-3-1974. The initial compensation of Rs. 28,74,577 would be taken at its face value for the assessment year 1974-75. The only thing that was to be done was to evaluate the enhanced compensation that was ordered by the High Court on 28-1-1987 in a sum of Rs. 24,03,451, Having regard to the market rate of interest, the Tribunal felt that it would be reasonable to adopt an interest rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the enhanced compensation as ordered by the High Court in a sum of Rs. 24,03,451 falls for our consideration. The present value of Re. 1 at the end of 10 years at 10% interest rate is .3855 and at the end of 9 years is .4241. The final enhanced compensation of Rs. 24,03,451 evaluated at the respective multiplying factors indicated hereto before is given in para 6A of this order." 5. In all these computations the Tribunal allowed 25% discount to cover risks, uncertainties and hazards of litigation. In our considered opinion, none of the questions raised by the revenue is a referable question of law. The payments received at future date were shrouded in uncertainties. It is only but proper that its present is ascertained. The present val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idle when the litigation was moving from forum to forum. Add to this the assessments were made on the assessee for the impugned years in far excess amounts against which the assessee has to agitate the matter through the appellate forums and then to the High Court. The Tribunal had in its mind all these factors when it held that the assessee had to undergo a tortuous course of litigation. Thus, this is a case of pure finding of fact. 7. The revenue questions granting of 25% discount from the total value of compensation. This was granted keeping in view the observations of the High Court that proper discount should be given to cover risks, uncertainties and hazards of litigation. The percentage was indicated in the open court to which neit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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