PENTAKOTA RADHAKRISHNA Vs. C I T, VISAKHAPATNAM

JUDGEMENT

(1.) THIS reference, at the instance of the assessee -applicant, raises certain questions of considerable importance.

(2.) THE applicant owned Ac.7.31 cents of land at Visakhapatnam. It was acquired by the Government, by invoking the provisions of the Land Acquisition Act (for short the Act). The Land Acquisition Officer passed an award dated 25.09.1970 determining the market value at Rs.2.87 ps. per square yard. A sum of Rs.1,02,068/ - was paid on the same day and possession was taken. At the instance of the applicant, a reference under Section 18 of the Act was made to the Subordinate Court, Visakhapatnam and it was taken up as O.P.No.59 of 1971. The trail Court passed a decree dated 05.02.1974 enhancing the market value to Rs.20/ - per square yard, which aggregated to Rs.6,93,187/ -.

(3.) ABOUT two years thereafter i.e., on 26.04.1976, the applicant created a Trust for the members of his family and for charity. He endowed a sum of Rs.1,000/ - initially and made provision for transfer of the amount receivable under the decree passed in O.P.No.59 of 1971 and the further appeal that may arise out of it.