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TMI Blog1962 (3) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act?" An area of land belonging to the assessee was* acquired by the State under the provisions of the Travancore Land Acquisition Act, 1089. The compensation awarded was enhanced first by the District Court and then by the High Court, and on the enhanced amount, interest was directed at 6 per cent. per annum from the date on which the assessee was dispossessed by the State. That interest, ₹ 16,477, is the interest specified in the question referred for decision. The Travancore Land Acquisition Act, 1089, like the Acquisition Act, 1894, contains two provisions regarding the grant of interest. They are section 25(3) corresponding to section 28 of the Indian Act' and section 31 corresponding to section 34 of the Indian Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax [1935] 3 ITR 237 ; AIR 1935 P.C. 143, the Board said that "anything which can properly be described as income, is taxable under the Act unless expressly exempted". The contention of the assessee is that the amount concerned cannot properly be described as income; that it is nothing else or other than a capital sum estimated in terms of interest. In Inglewood Pulp and Paper Co. Ltd. v. New Brunswick Electric Power Commission AIR 1928 P.C. 287 the Board said that it is well established that on a contract for sale and purchase of land it is the practice to require the purchaser to pay interest on his purchase money from the date he took possession, that the position is the same when the acquisition is comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spects we want to emphasise are emphasised in the decision it is unnecessary to go over the ground afresh. The decision is quoted with approval by Sanjiva Row, Aggarwala and Ramachandran in their commentaries to section 28 of the Indian Land Acquisition Act, 1894. Kanga in dealing with the case, however, has stated : "In Behari Lal Bhargava v. Commissioner of Income-tax [1941] 9 ITR 9 ; ITR 1941 All 135 interest awarded under section 34 of the Land Acquisition Act was held, it is submitted erroneously, to be not taxable as income. See the comment on this case in Commissioner of Income-tax v. Narayanan Chettiar [1943] 11 ITR 470 ; AIR 1943 Mad. 682 and Commissioner of Income-tax v. Sir Kameshwar Singh [1953] 23 ITR 212 ; AIR 1953 Pat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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