Valuation of compensation claims for acquired land must reflect the relevant date, not later court-enhanced awards.

The right to receive compensation for acquired land is an asset for wealth-tax purposes, but its value must be estimated separately on each relevant valuation date. Later enhancement of compensation by a court does not automatically fix the market value for earlier assessment years, especially where the award remains under challenge. The assessing authority must consider the property's marketability and the litigation risk in making that valuation. A Tribunal errs if it adopts the later enhanced compensation mechanically without first testing whether the original wealth-tax estimate was lawful. Fresh valuation on the relevant dates is therefore required.

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Issues: Whether the enhanced compensation, solatium and interest arising from acquisition of the assessee's lands were liable to be included in net wealth for the relevant assessment years on the basis of the final compensation awarded in later proceedings.

Analysis: The right to receive compensation for acquired land is an asset and must be valued as on each valuation date under the Wealth-tax Act. Subsequent determination by the civil court does not automatically fix the value for earlier valuation dates. Where the award of the Land Acquisition Officer has been made and is under challenge, the assessing authority must estimate the value having regard to the peculiar nature of the property, its marketability and the risk or hazard of litigation. If the civil court's award is itself under challenge by both sides, the later enhanced figure cannot be taken as the market value for prior years. The Tribunal erred in treating the High Court's enhanced compensation as the decisive valuation without first examining whether the Wealth-tax Officer's estimate was in accordance with law.

Conclusion: The inclusion of the final enhanced compensation as the value for the assessment years was not justified; the matter required a fresh inquiry into proper valuation on the relevant dates.

Ratio Decidendi: The right to receive compensation for acquired land is a taxable asset, but its value must be estimated as on the relevant valuation date by reference to marketability and litigation risk, and not by mechanically adopting a later court-awarded compensation figure.

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