TMI Blog1982 (7) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts under the mercantile system ? " The assessee is a private limited company. It maintained accounts on the mercantile system with the previous year as the calendar year. The relevant assessment year was 1970-71 and the total income was assessed by the ITO at Rs. 1,44,437 inclusive of Rs. 45,996 as income from other sources in respect of the requisitioned portion of the premises at "Stephen House ". The ITO observed that the circumstances being the same as in the last year, the rent receivable from the Govt. of West Bengal in respect of a portion of the 4th floor of the " Stephen House " requisitioned by the West Bengal Govt. was assessed as income of the assessee from other sources. Being aggrieved, the matter was taken in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther hand, supported the AAC and referred to certain authorities. The Tribunal discussed the case law and the contentions raised by both sides in paras 5-9 of its order dated July 4, 1973. It concluded that no income by way of monthly compensation from the Govt. of West Bengal accrued to the assessee during the relevant previous year and, therefore, it set aside the AAC's order and the ITO was directed to delete the addition of Rs. 45,996 from the instant assessment. The point which is canvassed before us on behalf of the Revenue is that in this case there has actually been a decision of the Land Acquisition Collector holding that the rent is to be paid to the assessee and that the Collector had actually paid rent to the assessee. Further ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Land Acquisition Collector could not be sustained. The Calcutta High Court directed the Land Acquisition Collector to go into the question afresh. This order was affirmed by the appeal court as the assessee did not seriously press the appeal. The Calcutta High Court in the meantime directed the advocate on record of the assessee-company to hold the amount of compensation of Rs. 3,37,372.85 until further order of the court. In the context of these facts it cannot be said that the assessee is entitled to get the compensation from the Land Acquisition Collector in this case. The assessee's right to get compensation is very much in dispute. This is not a case where the assessee is entitled to get compensation but the quantum of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... questions and decides the issue as to whether Dalhousie Properties Ltd., the landlord, or the assessee-company, the tenant, will get the compensation, it cannot be said that a debt has come into existence in favour of the assessee-company. The assessee-company's entire claim to get the compensation is under dispute. Therefore, it cannot be said that the assesseecompany has acquired a right to get the compensation and a debt has come into existence in favour of the assessee-company and the income has, therefore, accrued to the assessee-company. An argument was also advanced that in the question raised, the Tribunal itself recognised the fact that the rents were receivable by the assessee and, therefore, it was argued that the answer to tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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