K.R. Dixit, Judicial Member - (1.)IN all these appeals there is only one question, i.e., whether the compensation received in respect of the acquisition of certain land can be taxed entirely in the hands of the assessee or has to be taxed in proportion to the actual compensation received by the assessee.
(2.)Briefly, the assessee was owner of certain immovable property which he purported to throw into the common hotchpot of a Hindu undivided family by declaration dated 7th August, 1970. On 18th August, 1970 there was a partial partition of that property as a result of which the assessee became entitled only to l/9th share of that property. In the land acquisition proceedings the assessee filed an application dated 3rd October, 1970 that l/9th part of the compensation may be paid to each one of the 9 members of the HUF. Accordingly, she received her l/9th share. However, the Income-tax Officer for the asst. year 1972-73 levied tax on the capital gains worked out on the basis of the full amount of compensation and not only on her 1/9th share. His view was based on the ground that the female member of a Hindu undivided family could not throw her property in the common stock. The AAC confirmed that order. The Tribunal however directed the Income-tax Officer to tax the assessee on the capital gain only if on the basis of the l/9th share of the compensation the assessee was liable to tax. For the asst. year 1976-77 the Tribunal held that no income-tax could be levied in respect of the interest on the full amount of compensation.
The learned counsel for the assessee has relied upon these two orders and submitted that since the Tribunal has held that the tax on the capital gains could be levied only in respect of the 1/9th share of the compensation and that the interest on the full amount of compensation could not be charged to income-tax, only 1/9th of the compensation and not the full compensation thereof constituted the wealth of the assessee for the asst. years before us.

(3.)HIS alternative submission was that if by any chance it is held that the full amount of compensation was a part of the assessee's wealth then in view of the fact that 8/9th part thereof has already been paid to others the value thereof in the assessee's hands be ascertained bearing in mind the difficulty of recovery of this amount