SETH NARSINGHDAS KANHAIYALAL Vs. COMMISSIONER OF WEALTH TAX

JUDGEMENT

(1.) THIS is a reference under S. 27(1) of the WT Act, 1957, at the instance of the assessee, Seth Narsinghdas Kanhaiyalal of Jabalpur. The Tribunal has posed before us the following questions :

(2.) THE material facts are that at the time of the partition effected between the assessee, his wife and his two sons by a registered deed dt. the 3rd Oct., 1955, Smt. Ramkunwarbai, the assessee's mother, was given onethousand shares of the Perfect Potteries Co. Ltd., Jabalpur, and some land situated in Mankhedi, Tehsil Patan, District Jabalpur, for her maintenance. The material portion of the partition deed dealing with this matter ran as follows :

(3.) IN 1942, certain properties belonging to the assessee were first requisitioned by the Government. They were later on acquired in 1956, under the Requisitioning and Acquisition of Immovable Property Act, 1952, and the Rules framed thereunder. The assessee made a claim that as he was the owner of the property the Government should pay him compensation of Rs. 13,62,536 in respect of the property acquired. By an agreement dated the 4th July, 1960, concluded between the assessee and the Government, the assessee was paid Rs. 1,56,471 "as compensation for the said property pending agreement as to, or determination of, the amount payable as compensation to the owner." The amount was received by the assessee in July, 1960. Clause 3 of this agreement provides that :