1971 (12) TMI 20

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..... 56(1) of the Income-tax Act, 1961, by the Income-tax Appellate Tribunal, Cochin Bench, at the instance of the revenue and the question referred is : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the amount received by the assessee by way of interest till the date of the award is capital receipt ? " The question arose with refere .....

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..... ,106.33 represented the interest on the amount of compensation awarded for the period from November 29, 1961, to September 6, 1962, the date of payment. The Tribunal considered the bulk of this amount as representing compensation for deprivation of property, and, therefore, receipts in the nature of capital and held that the receipts were not taxable. Paragraph 9 of the Tribunal's order is in thes .....

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..... n paid in this case. He went to the extent of submitting that even if this is not so, it must be taken that the possession assumed by the Government was also under the provisions of the Act and the interest payable under sections 28 and 34 of the Land Acquisition Act, 1894, are awardable in relation to possession taken outside the Act. A distinction has been drawn in relation to possession assume .....

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..... awn by the Supreme Court in the decision in Dr. Shamlal Narula v. Commissioner of Income-tax referred to by the Tribunal. That this distinction is real, cannot be disputed and in a later decision of the Supreme Court in T. N. K. Govindarajulu Chetty v. Commissioner of Income-tax the earlier decision is referred to and approved. In the nature and in the circumstances of this case, we are unable to .....

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..... rt in Dr. Shamlal Narula v. Commissioner of Income-tax. We answer the question referred to us in the affirmative, that is, against the department and in favour of the assessee. We make no order as to costs. A copy of this judgment under the seal of the High Court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench. Question answered in the aff .....

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