9911796707
TMI Blog1998 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... y this court vide its judgment dated April 22, 1958. In terms of this decree, the appellant was required to deposit Rs. 85,000 within 30 days of the decree and thereupon the title in the property was to be conveyed to the appellant. This court also passed a decree declaring that the appellant was entitled to mesne profits against the respondent therein and in connection therewith the decree of this court stated as follows : "AND THIS COURT DOTH ACCORDINGLY DIRECT that the trial court do hold an enquiry about the mesne profits, and such sums as may be found to be due on inquiry against the second and third respondents in respect of the mesne profits be deducted from the amount to be deposited in cash in the court by the appellant aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1963-64 and the same could not be taxed in the assessment year 1964-65. The aforesaid questions were answered accordingly. It is contended by Shri Balakrishnan that the right to receive the mesne profits accrued to the appellant on April 22, 1958, when this court decreed the suit of the appellant and held that he was entitled to receive the mesne profits. Learned counsel submits that as the right had accrued on that day, merely because the quantification of the same was postponed, it would not mean that the income accrued only at the time when the trial court computed the amount of mesne profits. Shri Ahuja, learned counsel for the respondent, however, submitted that with the passing of the decree by this court the appellant only got an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year when the decree was passed in 1956. Dealing with the question as to what was the income that could be said to have accrued to him on that date and which it could be assessed to tax, the High Court at page 657 observed as follows : "If the actual amount of compensation has not been fixed, no income could accrue to him. It cannot be contended that the mere claim by the assessee, after taking of possession, at a particular rate or for a certain sum is the compensation. It is the amount actually awarded by the Collector or subsequently decreed by the court which accrues to him, and the respective amounts, whether awarded by the Collector or the court accrue on the respective dates on which the award or the decree is passed. Income-tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hstanding the period of limitation fixed under the Income-tax Act, to reopen the assessment in which he had included the initial compensation awarded by the Collector and recompute the entire income on the basis of the final compensation? We do not think there can be any justification for such a proposition. On a proper construction of the terms 'accrue' or 'arise', we are of the view that such an interpretation cannot be placed. The interpretation given by us does not affect the interests of the Revenue. At the same time, it safeguards the assessee and prevents harassment. To hold otherwise would be contrary to the provisions of law." The aforesaid passage was quoted with approval by this court in CIT v. Hindustan Housing and Land Develop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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