Commissioner Of Wealth-Tax vs Attar Singh
1990 Latest Caselaw 10 Del

JUDGMENT

1. The petitioner is seeking reference of the following question of law to this court :

"On the facts and in the circumstances of the case, whether the Income-tax Appellate Tribunal was legally correct in deleting the direction of the Commissioner of Wealth-tax (Appeals) that the assessment should be rectified by substituting the amount finally payable by the court in respect of compensation ? "

2. In the instant case, the question arises as to valuation of the right to receive compensation on the valuation date. The Wealth-tax Officer had valued the claim of the assessed on the basis of the assessed's demand for enhancement. In appeal, it was held that it was merely a claim and that therefore, it was not proper to place any value on the claim. The appellate authority, however, gave a direction that, as and when the appeal to the High Court or the Supreme Court was allowed and if any enhancement in the compensation is allowed, then the Wealth-tax Officer would be at liberty to rectify the assessment and value the claim in the light of the enhancement. The assessed went up in appeal and the Tribunal came to the conclusion that this direction could not be given. In our opinion, the question sought to be raised is concluded by a decision of this court in CWT v. S. K. Dass [1986] 161 ITR 292, according to which the valuation is to be as on the basis of the award or order already passed. There is no provision in the Wealth-tax Act whereby rectification can be made merely because, at a later date, compensation has been enhanced. The answer to the question, which is proposed, is self-evident and we see no reason as to why a reference should be called for. The petition is, accordingly, dismissed.

3. There will be no order as to costs.

4. Petition dismissed.