2011 (2) TMI 867

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..... that the assessee is not following the mercantile system of account - The similar issue came up for consideration before this Court in The Commissioner of Income Tax, Faridabad v. Bir Singh (HUF) Ballabgarh (2010 -TMI - 205309 - PUNJAB & HARYANA HIGH COURT) - As per this case the appeals are allowed and the questions of law are answered in favour of the revenue.
MR. JUSTICE ADARSH KUMAR GOEL., .....

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..... 1 for the assessment year 1998-99, claiming the following substantial questions of law:- "(i) Whether, on the facts and in the circumstances of the case, the Hon'ble ITAT was right in holding that interest received on enhanced compensation is not taxable in the year of receipt, in view of the decision of the Apex Court in the case of CIT Vs. TNK Govindarajulu Chetty, despite the fact that the as .....

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..... fession' and 'income from other sources' are ascertained on the basis of system of accountancy followed by the assessee; (b) where assessee is not maintaining books of accounts by adopting any specific method, it shall be treated to be cash system of accountancy; (c) the interest under Section 34 to be awarded by the Collector partakes the characters of compensation and is taxable in the year .....

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