TMI Blog1963 (9) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... the sum of ₹ 1961 representing three-fourths of ₹ 2614-67, the amount deposited by the Government. Rajagopala Pandarathar and his son Ramachandran Pandarathar were impleaded as respondents 1 and 2 to the petition. The Tribunal took the view that the interim payments by the Government represented the income of the Zamindar and as the respondent had purchased the life interest he was entitled to the entire income. Rajagopala Pandarathar died during the pendency of the petition and the appeal is now preferred. 2. The only point that arises is whether the interim payments deposited by the Government constituted income of the erstwhile holder of the estate. Learned Counsel for the respondent contended that under the scheme of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on behalf of the Bench. In that case it was held that the interim payments represented some or portion of the equivalent for the loss of a capital asset that they were exactly similar to the payments in respect of either advance compensation or the final compensation. It was also held that the fact that the quantum of the interim payment was to some extent based upon the annual income of the properties did not alter the real character of the deposit, so as to dissociate it from capital asset. With regard to the argument based upon Section 50(8) the learned Judge observed as follows: The learned Advocate-General appeared to place great reliance upon Section 50 , Sub-section (8) which read thus : No interim payment made under this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to interpret this provision in that light. What is stated is that the interim payment shall not be part of the compensation which the Government are liable to deposit under Section 41 . That it is not part of the compensation so computed under Section 39 and liable to be deposited under Section 41 , Sub-section (1) does not mean that it is not compensation for all purposes. This section cannot to our minds lead to any such conclusion. 4. The same view was taken regarding the scope of Section 50(8) in a judgment delivered by my Lord the Chief Justice on behalf of the Bench, sitting with Venkataraman, J. in S.T.A. Nos. 21 and 22 of 1960. In that case when a mortgagee creditor applied for payment out of the interim payments, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the respondent. 5. We are also of the opinion that the argument based upon the recent judgment of the Supreme Court in Civil Appeal No. 420 of 1962 (1963) 2 S.C.J. 456 : (1963) 2 I.T.J. 241 lacks substance. It may be noticed that this appeal C.A. 420 of 1962 (1963) 2 S.C.J. 456 : (1963) 2 I.T.R. 241 was from the judgment of the Andhra Pradesh High Court in Raja Rameswar Rao v. Commissioner of Income Tax, Hyderabad MANU/AP/0095/1960 : [1960]40ITR576(AP) which arose under the Hyderabad (Abolition of Jagirs) Regulation 1358-F., providing for a scheme for the abolition of Jagirs. Srinivasan, J. in the judgment referred to above 3 has referred to the judgment of the Andhra Pradesh High Court and on a careful analysis of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for the loss of income in the interim period. In the words of Jenkins, L.J., as will appear later, they were ' income compensation ' and therefore of the income nature. We have said enough to indicate that the judgment of the Supreme Court does not apply to the instant case. 6. The appeal, therefore, succeeds and will therefore have to be allowed. 7. The allowance of the appeal does not mean that the respondent will not be entitled to any portion of the interim payment. Since the interim payments represented the compensation, the respondent will be entitled to a portion of the compensation in the same ratio as was decided by the Estates Abolition Tribunal by its order dated 9th June, 1953, when the advance comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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