TMI Blog1998 (2) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... d three appeals are dismissed as infructuous. 3. The brief facts in relation to remaining appeals are that the assessee received an amount of Rs. 6,07,725 in the financial year 1992-93 as interest on enhanced compensation for agricultural land situated in village Sohana, Teh. Kharar, Distt. Ropar, acquired by the Land Acquisition Department. Assessments had been completed under section 143(1). In view of the decision of Hon'ble Supreme Court in the cases of Rama Bai v. CIT [1990] 181 ITR 400/[1981] 54 Taxman 496 and K.S. Krishna Rao v. CIT [1990] 181 ITR 408, the Assessing Officer held that the amount of Rs. 83,090 accrued to the assessee on account of the said interest during each year under consideration and the provisions of sections 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the years under consideration, the provisions of sections 208 to 210 as well as sections 234B and 234C became operative and the assessee was bound to pay advance tax, interest having accrued in the years under consideration. Since such advance tax has not been paid, interest under sections 234B and 234C was chargeable. She also referred to the decisions reported in Ranchi Club Ltd. v. CIT [1996] 217 ITR 72/85 Taxman 201 (Pat.) relied upon by ld. counsel and observed that it was not relevant as it pertained to charging of interest under section 234A and not under sections 234B and 234C. 5. Ld. counsel mentioned in brief that the agricultural lands belonging to the assessee were acquired by the Government on 12-7-1984 and the compensation w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 ITR 566 (Raj.), G.Mageshwari v. Asstt. CIT [1993] 201 ITR 472/67 Taxman 497 (Ken), CIT v. Triple Crown Agencies [1993] 204 ITR 377 (Gauhati), CIT v. Kapoor Chand Ram Chand [1995] 216 ITR 318/81 Taxman 495 (Raj.) and Metallurgical Engg. Consultants India Ltd. v. CIT [1996] 218 ITR 499 (Pat.). Apart from written submission placed in the form of paperbook, ld. counsel pleaded that the real controversy is as to whether there has been any infringement of the provisions of sections 208 to 210 so as to attract the provisions regarding levy of interest under sections 234B and 234C. He submitted that in spite of amendment by the Finance Act, 1995 in section 234B whether the proceedings for reassessment could be treated as proceedings for regular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or on further appeal has to be taken to have accrued not on the date of the order of the court granting enhanced compensation but as having accrued year after year from the date of delivery of possession of the land till the date of such order, in the case of K.S. Krishna Rao, it was held that interest on enhanced compensation cannot be taxed all in a lump sum as having accrued on the date on which the court passes the order for enhanced compensation: the interest has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the court on a time basis. Obviously, the intention in using the expression 'spread over on an annual basis' in the judgment emphasised that the income becomes tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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