COMMISSIONER OF WEALTH TAX CALCUTTA Vs. ANJAMLI KHAN

JUDGEMENT

(1.) These three appeals arise out of the assessments to wealth tax of Kumar Amarendra Lal Khan (since deceased) for the assessment years 1957-58, 1958-59 and 1959-60, Shri Khan (hereinafter referred to as the "assessee") owned vast agricultural properties which, by virtue of the provisions of the West Bengal Estates Acquisition Act, 1953 (hereinafter referred to as the "Act"), came to vest in the State of West Bengal. Under the Act, the assessee was entitled to receive compensation in respect of the lands. The mode of determination and payment of compensation has been prescribed under Ss. 16 and 17 read with S. 23 of the Act. In completing the assessments of the assessee to wealth-tax for the assessment years above mentioned (in respect of which the relevant valuation dates were 14-4-1957, 14-4-1958 and 14-4-1959 respectively),- the Wealth-tax Officer required the assessee to furnish particulars of the compensation due from the Government. The assessee was unable to furnish such particulars but stated that his agricultural income from the lands used to be assessed at Rs. 1,00,000/- per annum and that the taxes thereon amounted to Rs. 20,000/ - per annum. Taking the net agricultural income at Rs. 80,000 / - and applying the provisions of S. 17(1) of the Act, the Wealth-tax Officer estimated the compensation payable to the assessee at Rs. 3,40,000/-. Deducting there from the interim compensation already received by the assessee, the amount of compensation due to him was estimated at Rs. 3,25,000/- as on 14-4-1957, Rs. 3,00,000/- as on 14-4-1958 and Rs. 3,00,000/- as on 14-4-1957.

(2.) The assessee preferred appeals to the Appellate Assistant Commissioner contending that the compensation receivable from the West Bengal Government was not an 'asset' which could be included in the net wealth of the assessee under the Wealth-tax Act. The Appellate Assistant Commissioner negatived this contention and affirmed the assessments. The assessee preferred further appeals to the Tribunal. The Tribunal, following an earlier decision dated 29-4-1963 in WTA Nos. 302 to 304 of 1961-62 accepted the contention put forward by the assessee. In that decision, the Tribunal had discussed the provisions of the Act and concluded:-

(3.) On the request of the Commissioner of Wealth-tax, the Tribunal referred the following question to the High Court at Calcutta for its opinion:-