COMMISSIONER OF INCOME TAX Vs. M C MENON

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Cochin Bench, has referred the following questions, at the instance of the Commissioner of Wealth Tax, to this Court, for its opinion:

(2.) The only point that arises for consideration is whether or not the extra compensation awarded by the civil court in a land acquisition case would constitute the value of the asset for the purpose of S.7(1) of the Wealth Tax Act, 1957. This question no more is res integra in view of the decisions of the Supreme Court in Pandit Lakshmi Kant Jha v. Commissioner of Wealth Tax, Bihar and Orissa, 90 ITR 97, and Mrs. Khorshed Shapoor Chenal v. Assistant Controller of Estate Duty, A. P., 122 ITR. 21. The Supreme Court in Pandit Lakshmi Kant Jha's case has held as follows:

(3.) The facts of the case on hand disclose that the assessee received a sum of Rs. 94,329/- as additional compensation as per the decree in L. A. C. No. 140/1970 awarded by the Additional Subordinate Judge, Ernakulam.