Enhanced compensation claim as wealth-tax asset: value must be estimated realistically, not taken at award or full claim amount.

A right to claim enhanced compensation for acquired property is treated as a valuable property right and can be included in net wealth under the Wealth-tax Act, 1957. Its value is not to be fixed mechanically by reference to either the Land Acquisition Officer's award or the amount claimed in reference proceedings. The proper approach is to estimate the claim's market value realistically, having regard to the nature of the property, its marketability, surrounding circumstances, and the risk or hazard of litigation. The claim is therefore an asset for wealth-tax purposes, but its assessable value must be determined on a proper valuation basis.

---

---

Issues: Whether an assessee's claim for enhanced compensation in respect of acquired property is an asset capable of being included in net wealth under the Wealth-tax Act, 1957.

Analysis: The right to claim enhanced compensation arising from acquisition is itself a valuable property right and cannot be ignored in computing net wealth. Its value is not to be equated mechanically with either the amount awarded by the Land Acquisition Officer or the exaggerated amount claimed in the reference proceedings. The proper approach is to estimate the value having regard to the nature of the property, its marketability, surrounding circumstances, and the risk or hazard of litigation.

Conclusion: The claim for higher compensation is an asset and is includible in the assessee's wealth, but its value must be determined on a proper estimation basis.

Ratio Decidendi: A right to receive enhanced compensation for acquired property is property capable of valuation and inclusion in net wealth, but its assessable value must be estimated realistically by considering marketability and litigation risk, not by adopting either the collector's award or the full claim amount.

---