Law: Wealth Tax Act, (XV of 1963)

Section: 16

Wealth Tax Act (XV of 1963)----S. 16---Assessment---No value of plot acquired by the Government was declared--- Compensation was to be paid by the Government--­Addition of value of such plot in net wealth by Assessing Officer--­Reduction in value by First Appellate Authority subject to action under S.35 of the Wealth Tax Act, 1963 as and when compensation was paid by the Government---Validity---Value of plot determined by the First Appellate Authority was still favourable to Revenue---Assessee was no more owner of property in question and it was her right to receive compensation which should be valued---Said right could not be more than the sum determined by the Land Acquisition Collector ---Assessee had not received amount deposited in Tehsil Office---Amount determined by the Collector was the only value determined till a higher valuation for the property in question was ascertained by relevant forums---Assessee ought to have disclosed this amount as receivable instead of showing ownership of the said plot which did not belong to her any more--­Approval of action by the First Appellate Authority in estimating the value of land was unjustified---Appeal of the Department was rejected by the Appellate Tribunal. ORDER NASIM SIKANDAR (JUDICIAL MEMBER).---The assessee in this departmental appeal for the year 1994-95 is an individual who returned her net wealth for the year at Rs.23,97,708. The immovable properties disclosed included a plot at Jail Road, Lahore. No value in respect of the plot was disclosed on the ground that it had been acquired by the Government and was at present a part of Kinaired College, Lahore. The Assessing Officer however, finding that no evidence in support of claim of acquisition having been adduced, proceeded to estimate its value at Rs.10,00,000. 2. Learned First Appellate Authority CIT(A)-III, Lahore by way of its order, dated 11-12-1997 partly agreeing with the submissions made before it directed reduction of the value of plot of Rs.3,00,000 subject to an action under section 35 of the Wealth Tax Act, 1963 as and when the compensation was paid by the Government. The relief so allowed has grieved the Revenue. 3. Learned counsel for the…

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