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TMI Blog2010 (5) TMI 832X X X X Extracts X X X X X X X X Extracts X X X X ..... t "the LA Act"). Having completed all the codal formalities, the Land Acquisition Collector (hereinafter to be referred as "the LAC") passed award No. 2 on 7th May, 1986. Being dissatisfied with the compensation awarded by the LAC, the assessees filed the reference petition under s. 18 of the LA Act and the Civil Court enhanced the compensation at the rate of Rs. 100 per sq. yd. along with all statutory benefits, vide order dt. 22nd Sept., 1990. 3. In the wake of regular first appeals by the landowners/assessees as well as by the State of Haryana, this Court assessed the market price of the acquired land at the rate of Rs. 120 per sq. yd. along with all statutory benefits under the LA Act. The matter is stated to be pending in the Hon'ble Supreme Court. 4. The Revenue claimed that although the final payment of the enhanced compensation was actually received, during the financial year 1995-96, but since the assessees acquired the right to receive the compensation/ enhanced compensation, during the relevant period of asst. yrs. 1990-91, 1991-92 and 1992-93, so, the amount of compensation was liable to be added in their wealth, during the indicated previous years, under the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amli Khan (1990) 90 CTR (SC) 22: (1991) 187 ITR 345(SC) and Pandit Lakshmi Kant Jha vs. CWT 1973 CTR (SC) 260: (1973) 90 ITR 97(SC) such a right was includible in net wealth." That is how, we are seized of the matter. 10. We heard the learned counsel for the parties and have gone through the record with their valuable help. 11. As is evident from the record, the land of the assessees was acquired in pursuance of notification dt. 23rd May, 1983. Having completed all the codal formalities, the LAC passed the award No. 2 on 7th May, 1986. The assessees received the final payment of enhanced compensation, during the financial year 1995-96. It is not a matter of dispute that since the case pertains to the previous asst. yrs. 1990-91, 1991-92 and 1992-93, so, the same has to be decided, keeping in view of old definition of assets under the provisions of s. 2(e) and not amended provisions of s. 2(ea) of the WT Act, which was made applicable after 1st April, 1993. Thus, the facts of this case are neither intricate nor much disputed. 12. The main argument of the learned counsel for the Revenue that even mere right to receive the enhanced compensation of acquired land of the assessees wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the High Court by the Tribunal in the following manner : The Tribunal ought to have held that the value of the assessee's right to receive compensation under the provisions of the West Bengal Estates Acquisition Act as on the relevant valuation dates had to be included in the assessee's net wealth for the asst. yrs. 1957-58, 1958-59 and 1959-60. However, for the reasons stated above, the amounts of compensation determined by the WTO at Rs. 3,25,000, Rs. 3,00,000 and Rs. 3,00,000, respectively, cannot be included in the net wealth; but only the value, as on the relevant valuation dates, of the assessee's right to receive compensation estimated in accordance with proper principles can be included in the net wealth of the assessee. What such estimated value should be will have to be decided by the Tribunal while disposing of the matter conformably to our judgment. In doing so, the Tribunal should give both parties an opportunity to put forward their respective contentions. The appeals are disposed of accordingly. In the circumstances, however, we make no order as to costs. Appeals allowed." 15. That means, the Hon'ble apex Court in Smt. Anjamli Khan and Pandit La ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he State is entitled to issue notice to the parties under s. 9 and on expiry of fifteen days, the State is entitled to take immediate possession even before the award could be made. Otherwise, it would take possession after the award under s. 12 is made. 21. Likewise, s. 16 of the LA Act posits that "when the Collector has made an award under s. 11, he may take possession of the land, which shall thereupon vest absolutely in the Government, free from all encumbrances. 22. The LAC is required to assess the market value of the land not on the basis of actual value but he has to assess it within the constraint of s. 23 of the LA Act and not otherwise. The matters depicted in s. 24 have to be neglected in determining the compensation. Although a person interested may approach the appropriate Court for the determination, with regard to the measurement of the land, amount of compensation, the person, to whom, it is payable or the apportionment of the compensation among the persons interested under ss. 18 and 30 of the LA Act, but they are legally debarred to approach the regular Civil Court to redress their grievances under s. 9 of CPC, as has been held by the Hon'ble apex Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulative and inchoate. Therefore, we are of the considered view that since the provisions of LA Act are remarkably different than that of Bengal and Bihar Acts, so, the observations of Smt. Anjamli Khan and Pandit Lakshmi Kant Jha's cases (supra) would not come to the rescue of the Revenue in this relevant behalf. 25. Not only that, an identical question arose before the Hon'ble apex Court in case CIT vs. Hindustan Housing & Land Development Trust Ltd. (1986) 58 CTR (SC) 179: (1986) 161 ITR 524(SC), in which, certain lands belonging to the respondent company were compulsorily acquired by the State Government. The arbitrator awarded the compensation. Thereupon, the State Government preferred an appeal to the High Court. Pending the appeal, the State Government deposited the amount in the Court being the additional amount payable under the award and the company was permitted to withdraw that amount only on furnishing a security bond for refunding the same in the event of the appeal being allowed. The question raised was whether a mere right to receive compensation could be taxed on the ground that it became payable pursuant to the arbitrator's award. The Tribunal held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent case which arises under the IT Act, 1961 ? At the outset, it may be noted that the judgment of this Court in Hindustan Housing was delivered on 29th July,1986. It was prior to 1st April,1988, when s. 45(5) stood incorporated by the Finance Act, 1987, w.e.f. 1st April,1988. Further, the judgment of this Court in Hindustan Housing (supra) has been given in respect of asst. yr. 1956-57 under the Indian IT Act, 1922, whereas, in the present case, we are concerned with the 1961 Act, which defines the word 'transfer' in much wider sense under s. 2(47). Lastly, for the reasons given hereinafter, particularly in the context of introduction of s. 45(5) of the 1961 Act w.e.f. 1st April,1988, a totally new scheme stood introduced keeping in mind cases of compulsory acquisition under the 1894 Act under which compensation is payable at multiple stages and amounts stand withdrawn by the assessee-claimants and used by the assessee(s) for several years, during which litigation is pending. It is in the context of s. 45(5) that we need to decide the year of taxability. It is significant to note that s. 12B of the 1922 Act did not contain specific reference to compulsory acquisition as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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