1970 (2) TMI 19

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..... sions of the U. P. Zamindari Abolition and Land Reforms Act, 1951?" The assessee, Maharaja Pateshwari Prasad Singh of Balrampur, owned extensive estates in the State of Uttar Pradesh. On the abolition of zamindari under the U. P. Zamindari Abolition and Land Reforms Act his proprietary rights as an intermediary in the estates ceased and vested in the State of Uttar Pradesh and he became entitled under the Act to compensation. The compensation was paid, in accordance with the provisions of the Act and the rules made thereunder, in the form of promissory notes described as Zamindari Abolition Compensation Bonds. The assessee received compensation bonds of the face value of Rs. 1,90,550 during the period immediately prior to March 31, 1957. S .....

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..... of the compensation bonds. The Appellate Tribunal reversed the finding of the Appellate Commissioner and restored the amount included by the Wealth-tax Officer. At the instance of the assessee, the Appellate Tribunal has now made the present reference. The question which the Appellate Tribunal has referred is in substance whether the market value of the compensation bonds of the face value of Rs. 26,27,300 could be included in the total assets of the assessee for the purpose of wealth-tax for the assessment year 1957-58. Under section 4 of the U. P. Zamindari Abolition and Land Reforms Act all estates situated in Uttar Pradesh vested in the State as from the date of vesting. The date of vesting was July 1, 1952. The consequences of such v .....

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..... e of section 27 of the Act and it is that right which fell to be valued on the valuation date. In our opinion, the market value of the compensation bonds of the face value of Rs. 26,27,300 in so far as it represented the value of the assessee's right to those bonds was includible for the purpose of wealth-tax for the assessment year 1957-58. The question has been considered by a number of courts in this country wherever estates of intermediaries or jagirdars have been abolished and compensation has become payable under the statute therefore : see Maharajkumar Kamal Singh v. Commissioner of Wealth-tax, Sardar C. S. Angre v. Commissioner of Wealth-tax, Pandit Lakshmi Kant Jha v. Commissioner of Wealth-tax and Vadrevu Venkappa Rao v. Commissi .....

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