9911796707
TMI Blog1998 (1) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... n this appeal is as to in which assessment year the appellant is liable to be assessed in respect of mesne profits which were awarded in his favour. Briefly stated, the facts, as found by the Tribunal, are that the appellant had agreed to purchase a tile factory, vide written agreement dated May 22, 1950. When the vendor did not convey the property as promised, the appellant filed a suit for specific performance. This suit was ultimately decreed in appeal by this court vide its judgment dated April 22, 1958. In terms of this decree, the appellant was required to deposit Rs. 85,000 within 30 days of the decree and thereupon the title in the property was to be conveyed to the appellant. This court also passed a decree declaring that the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 676, 687) : "1. Whether the mesne profits decreed by the Supreme Court accrued to the assessee earlier to the accounting year relevant to the assessment year 1963-64? 2. Whether, on the facts and in the circumstances of the case, the mesne profits received by the assessee is liable to be taxed in the assessment year 1964-65?" The High Court, by its judgment under appeal, came to the conclusion that the mesne profits were rightly taxed in the assessment year 1963-64 and the same could not be taxed in the assessment year 1964-65. The aforesaid questions were answered accordingly. It is contended by Shri Balakrishnan that the right to receive the mesne profits accrued to the appellant on April 22, 1958, when this court decreed the suit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently enhanced, on property being acquired under the provisions of the Land Acquisition Act. In Khan Bahadur Ahmed Alladin Sons v. CIT [1969] 74 ITR 651 the High Court of Andhra Pradesh had to consider such a question. There the land was acquired in the year 1954 and additional compensation was paid as per court decree in 1956. The question arose whether this additional compensation was taxable in the year when the land was taken over or was taxable in the year when the decree was passed in 1956. Dealing with the question as to what was the income that could be said to have accrued to him on that date and which it could be assessed to tax, the High Court at page 657 observed as follows : "If the actual amount of compensation has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awarded enhanced compensation, there is a right of appeal by the Government to the High Court, and the High Court may either disallow that claim or reduce the compensation. As against that judgment, there is a further right of appeal to the Supreme Court. The assessee also can appeal against the insufficiency of the enhanced compensation. Can it be said that the final determination by the highest court of the compensation would entitle the Income-tax Officer, notwithstanding the period of limitation fixed under the Income-tax Act, to reopen the assessment in which he had included the initial compensation awarded by the Collector and recompute the entire income on the basis of the final compensation? We do not think there can be any justifi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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