TMI Blog1970 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... ces made by the Income-tax Appellate Tribunal relating to the assessment years 1956-57, 1957-58, 1958-59 and 1961-62. The appellant who is the assessee was a jagirdar of the erstwhile Gwalior State. By the Madhya Bharat Abolition Jagirs Act, 1951, hereinafter called the " Act ", the Jagirs were abolished with effect from December 4, 1952. Under section 8 of the Act compensation was payable to him in accordance with the principles laid down in Schedule I. Under sub-section (2) of that section the compensation payable became due as from the date of the resumption of the jagir. Simple interest was payable at the rate of 2 1/2 % per annum from that date up to the date of payment on the amount of compensation which was payable within a period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall carry simple interest at the rate of 2 1/2 % per annum from that date up to the date of payment : Provided that no interest shall be payable on any amount of compensation which remains unpaid for any default of the jagirdar, his agent or his representative-in-interest. Under section 12 every jagirdar whose jagir land had been resumed under section 3 had to file in the prescribed form a statement of claim for compensation before the Jagir Commissioner within two months from the date of resumption. On receipt of a statement of claim the Jagir Commissioner was to determine the amount of compensation payable to the jagirdar under section 8 as also the amounts recoverable from him under section 4(1)(e) and other matters mentioned in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scertained and payable from the date of resumption. The provision for interest was made simply because the compensation was to be paid in ten annual instalments. A clear distinction has been made between the compensation payable under sub-section (1) and the interest which is payable under sub-section (2). The compensation has to be determined in accordance with the principles laid down in Schedule I. That schedule indicates that the determination of compensation had nothing to do with the payment of interest. The marginal heading cannot control the interpretation of the words of the section particularly when the language of the section is clear and unambiguous. This court has held in Dr. Sham Lal Narula v. Commissioner of Income-tax, that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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