JAIN, J.—These are two references one under the Wealth Tax Act and the other under the Gift Tax Act. The assessee in both the cases is the same and the basic question involved in both the references is common. We therefore propose to decide them by one common judgment.

2. The facts leading to the Wealth Tax Reference are as follows : Thakur Gopalsingh was a Jagirdar in the erstwhile State of Udaipur. His Jagir was resumed in 1954 under the provisions of the Rajasthan Land Reforms and Resumption of Jagirs Act, 1952. Compensation in respect of the Jagir was awarded to the Jagirdar, The Wealth Tax Act, 1957 (Act XXVII of 1957) came into force on the first day of April, 1957. The matter relates to the wealth-tax assessment years 1957-58 and 1958-59. The valuation dates for each year are 30-9-1956 and 30-9-57 respectively. The compensation awarded in lieu of the Jagir was not declared in the return of net wealth by the assessee and it was contended by him that the Jagir was the ancestral property and it pertained to the Hindu undivided family consisting of himself, his wife and minor sons. Accordingly, it was urged that it was not taxable as individual in his hands. It was also asserted

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