2001 (9) TMI 40

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..... stance of the assessee is regarding its claim for deducting legal expenses incurred by it in contesting the quantum of compensation awarded by the State for the compulsory deprivation of agricultural land which was held by the assessee primarily on lease. The assessee was also deprived of some extent of land which it had owned. All this was the consequence of the legislation imposing a ceiling on .....

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..... compensation awarded. The assessee claiming a larger sum than the one the State had provided for in the legislation. The Tribunal has held that the expenditure obviously is an expenditure incurred in connection with the agricultural lands from which the assessee was deriving agricultural income which income was not subject to tax under the Central enactment. That was subjected to tax under the St .....

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..... the court. Such a deposit could not, therefore, properly be regarded as constituting income of the assessee during the relevant assessment year which is the assessment year 1981-82. A question similar to this was considered by us in the case of CIT v. South India Sugars Ltd. [2001] 248 ITR 92 (Mad). It has been held therein that the amount so held by the assessee subject to the orders of the cour .....

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