TMI Blog1999 (5) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... rbar with Shri Harisingh Shankarsing Pardeshi and others on 23-9-1979 with a view to sell the same in future in plots after converting the aforesaid land into non-agricultural land. The consideration was fixed at Rs. 1,62,500. The sum of Rs. 10,000 was to be paid as earnest money and the balance amount of Rs. 1,52,500 was payable in three annual instalments of Rs. 50,000 by 23-9-1980, Rs. 50,000 by 23-9-1981 and Rs. 52,500 by 30th September, 1982. As per the terms of the agreement, the assessee was able to obtain permission for conversion of land into Non-Agricultural land in respect of 2 Acres and 30 Guntas. This permission was obtained in the name of vendors. The said land was converted into 23 plots and the layout was got approved. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e meanwhile, the Assessing Officer issued notice under section 139 (2) of the Income-tax Act dated 20-9-1981 to the assessee for filing the income-tax return pertaining to assessment year 1981-82 in response to which the assessee filed the return on 25-3-1982 declared total income of Rs. 12,600 including the sum of Rs. 3,400 as commission at the rate of Rs. 200 per plot. In the course of assessment proceedings, it was claimed on behalf of the assessee that no income accrued to the assessee in view of the dispute between the parties which was finally resolved by way of consent decree dated 19-6-1989. The Assessing Officer was not satisfied with the contention of the assessee. The Assessing Officer recorded the statement of Shri Manilal Parde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year under consideration by virtue of which the assessee got the right to get the conveyance in his favour or in favour of the persons nominated by him. The plots were sold after converting the land into non-agricultural land as per terms of the agreement and the entire sale proceeds was received and kept by the assessee. Further, there was no dispute between the parties during the year under consideration and therefore, the income arising out of the sale of such plots accrued to the assessee. According to him, the decision of the Supreme Court relied upon by the counsel of the assessee is distinguishable on facts. 6. Rival contention of the parties and the material placed before us have been considered carefully. The arguments of Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to quote the terms of the agreement which provide consequences on the failure of the assessee to pay the instalments as per the agreement. The relevant portion in this regard is quoted below :--- "If you fail to pay the agreed amount before 30-9-1982, the advance amount as well as any other amounts given to us under this contract will be treated as forfeited and your right of purchase of land under this contract will be extinguished forever". The relevant portion of the Notice is quoted below : "Therefore, by this notice, you are hereby informed that "agreement to sell' entered by our clients with you is cancelled and the amount of bayana of Rs. 10,000 and Rs. 40,000 paid towards sale price is hereby confiscated and our clients are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come once accrued, then such accruals cannot be postponed. 9. The decision of the Hon'ble Supreme Court in the case of Hindustan Housing Land Development Trust Ltd. heavily relied upon by the learned counsel for the assessee is distinguishable on the facts. In that case, the enhanced compensation was awarded by the Court which was challenged by the Government before the High Court. It was observed by the Apex Court that if the appeal of the Government was allowed in its entirety, the right to payment of enhanced compensation would have fallen altogether. It is because of this reason, the court held that right of the assessee to the enhanced compensation was an inchoate right. However, in the present case, the income accrued to the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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