COMMISSIONER OF WEALTH TAX Vs. KARANBIR SINGH

JUDGEMENT

(1.) THESE petitions are being disposed of by a common order because the question of which reference has been sought by the petitioner under S. 27(3) of the WT Act, 1957, is identical in both the cases.

(2.) THE facts necessary for deciding whether or not the reference sought by the Revenue should be granted are that in the WT returns filed by the assessee in the status of HUF, the net wealth was declared at Rs. 6,02,300 for the asst. yr. 1987-88 (W.T.C. No. 4 of 1996) and at Rs. 5,82,000 for the asst. yr. 1988-89 (W.T.C. No. 3 of 1996). During the course of assessment proceedings, it was noted that the assessee had received enhanced compensation and interest amounting to Rs. 23,10,000 in May, 1986, in respect of agricultural land acquired for the Punjab State Electricity Board in 1962. The AO included that amount in the net wealth for the assessment years under consideration. The appeals filed by the assessee were dismissed by the CWT(A) but his second appeals were allowed by the Tribunal on the ground that the enhanced compensation could not be included in the net wealth of the assessee because it was being disputed by the State.