Crystallised compensation claim after land acquisition was includible in net wealth despite a pending enhancement reference.

Amount awarded by the Collector after land acquisition was treated as a crystallised asset on the valuation date once the acquisition had become final and possession had been taken. The filing of a reference for enhanced compensation under section 18 did not prevent receipt of the awarded amount under protest, nor did it justify excluding the amount from net wealth or valuing it only at a discount. On that basis, the awarded compensation was includible in the assessee's net wealth on the valuation date.

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Issues: Whether the amount of compensation offered by the Collector after acquisition of land, but not received because the assessee had sought enhancement under section 18, was includible in the net wealth of the assessee on the valuation date.

Analysis: Once the acquisition proceedings had become final and possession of the land had been taken before the valuation date, the amount awarded by the Collector represented a crystallised right in favour of the assessee. The amount could be received under protest without prejudice to the claim for enhanced compensation, and there was no legal impediment to its receipt merely because a reference for enhancement had been filed. In these circumstances, the contention that the amount was not an asset, or that only its discounted value could be taken, was rejected.

Conclusion: The amount of Rs. 23,309 was an asset of the assessee on the valuation date and was includible in the net wealth.

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