Wealth-tax valuation of acquisition compensation follows the awarded amount, not a higher claimed sum.

For wealth-tax purposes, the value of a right to receive compensation is measured by the amount legally awarded and payable, not by a larger sum merely claimed by the assessee. The Tribunal was correct in including only the compensation fixed by the Land Acquisition Officer in the assessee's wealth, because the claimant's higher assertion did not determine the taxable value. Since the award had been made, that amount alone represented the assessee's entitlement for wealth-tax purposes. The question was answered in the negative, in favour of the assessee.

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Issues: Whether, on the facts and in the circumstances of the case, the Tribunal was justified in including only the compensation amount awarded by the Land Acquisition Officer in the assessee's wealth, and not the higher claim made by the assessee.

Analysis: The right to receive compensation is property, but its value cannot be taken at the claimant's higher assertion merely because a larger amount is claimed. Where the Collector's award has been made, the estimated value cannot fall below that award and may be equal to or exceed it depending on the legal position, but the higher claim itself is not the measure of wealth. On the facts, only Rs. 91,466 had been awarded under the acquisition award, and that amount alone represented the assessee's entitlement for wealth-tax purposes.

Conclusion: The Tribunal was correct in law in sustaining inclusion of only the awarded compensation amount in the assessee's wealth; the question was answered in the negative, in favour of the assessee.

Ratio Decidendi: For wealth-tax purposes, the value of a right to receive compensation is determined by the amount legally awarded and payable, not by a larger amount merely claimed by the assessee.

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