Valuation of property covered under Ceiling Act for Wealth Tax cannot be higher than maximum compensation

Brief of the Case Supreme Court held In the case of SRI S.N. Wadiyar (Dead) through LR V. Commissioner of Wealth Tax that a property which is going to be taken over by the Government at a compensation of Rs. 2 Lakhs and is awaiting notification under Section 10 of the Act for this purpose, would not fetch more than Rs.2 lakhs as the assumed buyer knows that the moment this property is taken over by the Government, he will receive the compensation of Rs.2 lakhs only. Hypothetical presumptions of sales are to be discarded as we have to keep in mind the conduct of a reasonable person and “ordin...