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TMI Blog2004 (10) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... favour of the assessee and against the Revenue. - - - - - Dated:- 29-10-2004 - Judge(s) : R. K. AGRAWAL., PRAKASH KRISHNA. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion to this court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the interest on the deposit falling to the share of the assessee accrued from year to year and, therefore, the entire interest of Rs. 1,98,238 was not liable to tax in the assessment year 1975-76 only?" Briefly stated the facts giving rise to the present reference are a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt and it was decided on October 25, 1960, upholding the action of the Assistant Custodian. The decision is reported in Azimunnissa v. Deputy Custodian, Evacuee Properties, AIR 1961 SC 365. The respondent-assessee received the principal amount and the interest of Rs. 1,98,238 which related to the period 1956 to July 31, 1973. The Income-tax Officer treated the entire amount of interest as income of the respondent-assessee during the assessment year 1975-76. In the appeal filed by the respondent-assessee before the Commissioner of Income-tax (Appeals), the plea taken by the respondent-assessee that the interest had accrued from year to year, therefore, the entire amount could not have been taxed in the assessment year 1975-76, was accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely because a compromise had been arrived at between the members of the family, including the assessee, the accrual of the interest could be said to have been left in abeyance. The interest continued to accrue from year to year and then it became payable by the bank to the owner of the deposit. The only thing, which was not certain, was the share of the assessee in that deposit, which was finally settled as per the compromise in 1974. The assessee was, therefore, entitled to the receipt of the interest as and when it became payable by the bank in different earlier years. It cannot be said that the entire interest of Rs. 1,98,238 became taxable only in the year in which it was received by her. Admittedly, she was not maintaining any books of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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