LAWS(DLH)-2000-7-2

SHER SINGH HUF Vs. COMMISSIONER OF WEALTH TAX

Decided On July 05, 2000
SHER SINGH (HUF) Appellant
V/S
COMMISSIONER OF WEALTH TAX Respondents

JUDGEMENT

(1.) ALL these twelve reference relate to different questions but in respect of the same assessee. Some of the reference applications have been filed by the Revenue and some by the assessee.

(2.) THE question referred for the opinion of this Court under S. 27(1) of the WEALTH TAX ACT, 1957 (in short the 'Act'), at the instance of the Revenue is as under :

(3.) SO far as the question referred at the instance of the Revenue, the decision of the apex Court in the case of CWT vs. Smt. Anjamli Khan (1990) 90 CTR (SC) 22 : (1991) 187 ITR 345 (Del) : TC 64R.155 is applicable. It was held that the value of right to receive compensation on the date had to be included in the assessee's net wealth. Whether the compensation to be determined is payable on a date much later than the valuation date, the value of the assessee's right to receive compensation can only be the present value, i.e., the value as on the valuation date of the amount that may be determined and paid as compensation in future. It cannot be equal to the amount of compensation payable under the relevant statute. This position was again reiterated in the case of CWT vs. U.C. Mehatab (1998) 149 CTR (SC) 290 : (1998) 231 ITR 501 (SC) : TC S64.4569. Accordingly, the question referred at the Revenue's instance has to be answered in the affirmative, in favour of the assessee and against the Revenue.