1979 (11) TMI 85

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Tribunal, Delhi Bench 'E', New Delhi, has referred the following questions for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that out of the interest of Rs. 1,09,492 interest pertaining to this year alone was liable to be included in the assessment ? 2. Whether, on the facts and in the circumstances of the case, inc .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... owned a factory styled as M/s. Bimal Glass Works near Firozabad railway station. A portion of the land possessed by the assessees was notified for acquisition under s. 4 of the Land Acquisition Act on December 11, 1948. Notification under s. 6 was issued on January 11, 1949, and that was in respect of 2 bighas 5 biswas land. The possession of that land was taken on June 23, 1949. The Land Acquisit .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssessee earned interest amounting to Rs. 7,299 on that fixed deposit. An appeal was preferred before this court against the order of the Additional District judge, and that appeal was pending at the relevant time. For the year under consideration, i.e., 1973-74, during the assessment proceedings, the assessee claimed that neither the compensation nor the amount of interest was taxable inasmuch as .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d with the AAC that the amount of compensation being a capital receipt was not taxable. The inclusion of the amount of interest of Its. 7,299 was also upheld, but as regards the amount of Rs. 1,09,492 the view taken was that it stood on a different footing. According to the Tribunal, the interest accrued to the assessee from year to year and, hence, the ITO was directed to assess that amount of in .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that the amount of interest which related to the year under consideration alone was taxable in this year. We, therefore, answer all the three questions in the affirmative, against the assessee and in favour of the department. The CIT is entitled to his costs, which we assess at Rs. 200. The counsel's fee is also assessed at the same figure.    
Case laws, Decisions, Judgements, O .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X