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Issues:
1. Taxability of interest received on amount received under interim award from the High Court. Analysis: The case involved a reference made by the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur regarding the taxability of interest received by the assessee on the amount received under an interim award from the Rajasthan High Court. The assessee, in this case, received a sum of Rs. 2,31,020 under the interim award and deposited it in a fixed deposit with the Union Bank, subsequently earning interest of Rs. 16,758 for each of the assessment years in question (1973-74, 1974-75, and 1975-76). The Income-tax Officer treated this interest amount as part of the assessee's income for all three assessment years, a decision upheld by the Appellate Assistant Commissioner and the Tribunal. The High Court outlined the background of the case, where a property belonging to the assessee was acquired by the Government of Rajasthan under the Land Acquisition Act. Various valuations were made, leading to a final interim order by the High Court directing the government to pay a specific amount to the assessee. However, during the hearing of the reference cases, it was revealed that the appeal filed by the State Government against the decision of the civil court had been dismissed by the High Court. Consequently, there was no requirement for the assessee to refund the amount received under the interim order. Both counsels, for the Revenue and the assessee, acknowledged this fact, rendering the referred question regarding the taxability of the interest amount as purely academic. Given the dismissal of the appeal and the lack of necessity for the assessee to refund the amount received under the interim order, the High Court deemed the referred question as academic and returned the references unanswered. The judgment concluded that no purpose would be served in addressing the academic question, and hence, no costs were awarded in this matter.
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