TMI Blog2004 (9) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... e date would be the date on which the decision was rendered by the court and it is for that relevant year that the income-tax will have to be assessed as it can be said that the amount accrued on that date only – Question is answered in favour of the assessee - - - - - Dated:- 28-9-2004 - Judge(s) : B. C. PATEL., BADAR DURREZ AHMED. JUDGMENT The judgment of the court was delivered by B.C. Patel C.J.- The appellant has approached this court against the orders made by the Income-tax Appellate Tribunal under section 260A of the Income-tax Act 1961 (hereinafter referred to as "the Act"). At the request of learned counsel appearing for the parties, the appeals are taken up for final disposal. For the assessment years 1991-92 and 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntee of a nationalised bank within one month for restitution and to the effect that if the respondent succeeds, the petitioner shall refund the amount to the respondent along with interest. The amount was withdrawn on furnishing a bank guarantee and the same was deposited in fixed deposit account with the bank. The Assessing Officer held that the interest accrued on the amount so deposited is a taxable income for the years under consideration. Before the appeals were preferred before the Income-tax Appellate Tribunal, the High Court decided the issue in favour of the appellant during the financial year that ended on March 31, 1995. The appellant offered the principal sum awarded, namely, Rs. 33,41,669 and interest accrued thereon totallin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties. On a consideration of the record we find that the assessee-trust was allowed to withdraw the enhanced compensation deposited in the court by furnishing a bank guarantee for the amount of compensation as also for the future interest which is the subject matter in the present case. In view of the aforesaid fact, we are of the opinion that the right to receive the future interest as also the enhanced compensation by the assessee is still unsettled inasmuch as the assessee has been directed to withdraw the future interest also along with the enhanced compensation on furnishing a security for restitution. Accordingly, the withdrawal of the interest portion by the assessee is contingent inasmuch as there is a possibility of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ascertained amount. Till such time, no income can be said to have accrued ... On the date when the collector awarded the compensation, it is only that amount which had accrued or was deemed to accrue, whether in fact paid or not. But by no stretch of the words in section 4(1)(b)(i), could it be said that the right to enhanced compensation, which has not yet been accepted by the proper forum, namely, the court, has also become payable on the date when the original compensation became payable, for being included in that year of assessment. The enhanced compensation accrues only when it becomes payable, i.e., when the court accepts the claim." This decision has been approved by the apex court in the case of CIT v. Hindustan Housing and Lan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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