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TMI Blog1986 (3) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ymensingh in East Pakistan which is now in Bangladesh. Her share in these properties was one-third. The assessee had migrated from East Pakistan long ago. At the relevant valuation dates, she was a resident and citizen of India. In 1965, the aforesaid properties vested in the custody of enemy property, Pakistan and later on, the same vested in the Government of Bangladesh. The assessee had filed a claim before the custodian of enemy property for India claiming a compensation of Rs. 5,07,11,800. The assessee's one-third share came to Rs. 1,69,03,933. On this basis the WTO for the three assessment years under appeal added the sum of Rs. 1,69,03,933 in the net wealth of the assessee as the value of her one-third share in Bangladesh properties. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee submitted before us that under the Defence of Pakistan Rules, the properties left by the assessee in East Pakistan vested in the custodian of enemy property for Pakistan some time in the year 1965. It was further submitted that pursuant to the Tashkent Agreement, the Government of India decided to give some relief to the Indian nationals whose assets in Pakistan were seized by the Government of Pakistan during and after Indo-Pakistan conflict of 1965. The Government of India accordingly issued a notification in the form of a notice to claimants inviting claims in respect of the properties left in Pakistan and which later on vested in the custodian of enemy property for Pakistan. It was further submitted that the assessee co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India as embodied in the bilateral agreement arrived at between the two countries. It was submitted that as a national of India the assessee had a claim against the Government of India and it is against that claim that she received the payment. It was further urged the right to receive payment against the claim made by the assessee with the custodian of enemy property for India was an actionable claim or at least a valuable right. Such a right was a property and its value has been rightly included by the Commissioner (Appeals) in the net wealth of the assessee. The learned departmental representative placed reliance on a recent decision of the Supreme Court in the case of State Bank of Travancore v. CIT [1986] 158 ITR 102, in support of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed by the assessee in the office of the custodian of enemy property for India. The custodian of enemy property for India vide his letter dated 19-6-1976, a copy whereof, is included in the paper book filed by the assessee, decided to make an ex gratia payment of Rs. 14,55,153 to her in respect of the properties left in Pakistan. The contents of this letter as well as the notice issued by the custodian of enemy property for India leave no manner of doubt that it was with a view to give relief to the assessee in respect of her properties lost in Pakistan that an ad hoc interim relief in the shape of ex gratia grant was given to the assessee by the Government of India and the payment was made from the Consolidated Fund of India. We are no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the maximum of Rs. 25 lakhs and directing that the same be included in the net wealth of the assessee. In view of the facts and circumstances of the case and the materials placed before us we have no doubt in our minds that the payment received by the assessee from the Government of India in 1976 did not flow out of any right to receive the payment. The Commissioner (Appeals) was, therefore, not justified in valuing the alleged right or claim. 8. The Board's Circular No. 385 dated 3-7-1984 clearly says that the ad hoc interim relief granted by the Government of India in the form of ex gratia grant from the Consolidated Fund of India cannot be assessed to wealth-tax as there is no legally or enforceable claim to such relief. This circu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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