COMMISSIONER OF WEALTH TAX ANDHRA PRADESH Vs. AMATUL KAREEM

JUDGEMENT

(1.) The assessee is an individual assessed to wealth-tax for assessment years 1970-71. The assessee is a shareholder in the Estate of late Nawab Salar Jung which was the subject-matter of a prolonged litigation. On the death of Salar Jung III, an ordinance was issued on 12/11/1949, providing for the administration of his estate. In the litigation that followed among the heirs of late Salar Jung, a compromise was entered d into on 29/09/1956, and a preliminary decree for partition of the estate was passed by this court on 5/03/1959. Under the compromise decree, the assessees share of the property was determined, which among others, comprised of certain immovable properties which were subsequently acquired by the Government under the provisions of the Land Acquisition Act. Proceedings for acquisition of the lands were initiated on 4/08/1960 and a notification under s. 4(1) of the Land Acquisition Act was issued on 25/08/1960. It is in respect of the lands covered by this notification, the question as to how the wealth of the assessee should be assessed falls for consideration in this reference under s. 27(1) of the W.T. Act, 1957.

(2.) Immediately after the compromise decree came to be recorded by this court, two ladies, one claiming to be the wife of late Nawab Salar Jung and another claiming to be his daughter, field a petition on 21/12/1960, for leave to sue in forma-pauperis questioning the compromise decree and claiming a share in his estate. Pending the disposal of the petition, an injunction was issued by the trial court on 21/04/1961, restraining the parties from working out the compromise decree. That injunction was vacated only on 30/04/1962. The suit itself was dismissed some time in 1963 and the decree was confirmed by the High Court, with the details of which we are not concerned in this reference.

(3.) As regards the lands notified for acquisition on 25/08/1960, an award was made by the Special Deputy Collector on 19/04/1961, awarding a sum of Rs. 2, 39,526. This amount was paid on 2/07/1962 to the assessee after the interim injunction referred to above was vacated. The assessee-claimant sought a reference under s. 18 of the Land Acquisition Act for enhancement of the compensation. On that reference, the City Civil Court, Hyderabad, enhanced the compensation for the lands acquired to Rs. 4,09,300. The court also allowed solatium and interest thereon from the date the possession of the lands was taken. Aggrieved by that enhancement the State preferred an appeal to the High Court. Pending the appeal, the High Court permitted the assessee-claimant to withdraw the entire amount of compensation on furnishing security to the satisfaction of the court. Pursuant to the said order, the assessee withdraw the enhanced amount of compensation in December, 1968. The appeal as ultimately dismissed on 18/12/1970, and the enhanced compensation made by the City Civil Court on reference was confirmed.