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TMI Blog1981 (11) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... e rights so vested in the Government. In the assessment to wealth-tax for the year 1970-71, the WTO accepted the return filed by the assessee treating the right to get compensation as an asset valued at a certain figure and that was included in the net wealth of the assessee. From the assessment so based on such return the assessee filed an appeal contending that he included the right to compensation as an asset by mistake, that it was not an asset at all and further the valuation was excessive. The Tribunal considered in detail the various provisions of the Land Reforms Act, referred to various litigations pending concerning the constitutional validity of the legislation, referred to the uncertainties caused by the litigation and held tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned is the compensation receivable by a land-owner under the provisions of the Kerala Land Reforms Act. It may not be necessary to refer in detail to the scheme of that Act. Section 72 of the Act vests all right, title and interest of land-owners and intermediaries in respect of holdings held by cultivating tenants entitled to fixity of tenure in the Government as on the notified date, which date is January 1,1970. Therefore, the land-owner and intermediary, if any, ceases to have any ownership in his properties as from that date. Section 72A of the Act provides that every land-owner and intermediary whose right, title and interest vests in the Government under s. 72 shall be entitled to compensation as provided in sub-ss. (2), (3) and (4) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is certainly the better off for it. The land takes the form of compensation under the provisions of the Act. That is the asset. May be that if the land-owner attempts to negotiate and sell his right to receive compensation he may not get the same amount as could be found to be due as compensation calculated in accordance with the provisions of sub-ss. (2), (3) and (4) of s. 72A. In other words, the difficulty of obtaining compensation in time, the circumstance that it is only after adjudication that such compensation will be due and the further circumstance that one has to await the Government's payment of such compensation are all matters which may have relevance in determining what value the asset has, but not in finding that it has no v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H. Ariff v. CWT [1970] 76 ITR 471 (SC). The court dealing with a similar contention said (p. 477): " Mr. Sen has laid emphasis on the language of section 7(1) of the Act and has contended that the right to a share in the income is not capable of any valuation and the price which it would fetch, if sold in the open market, could not possibly be ascertained. Such an argument was fully examined in the Bombay case [1969] 71 ITR 180 in which the High Court referred to the provisions of the English statutes, which were in pari materia, as also decisions given by the English courts including the one by the House of Lords in Commissioners of Inland Revenue v. Crossman [1937] AC 26; 2 EDC 537 (HL). It has been rightly observed by the High Court tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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