9911796707
TMI Blog1995 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ined in the Land Acquisition Act. Dissatisfied with the quantum of compensation awarded by the Collector, the petitioner got the issue referred to the reference court, under section 18 of the Land Reforms Act. The reference court enhanced the amount of compensation. The total amount of compensation awarded was Rs. 1,37,249.57. That amount was directed to carry interest. The petitioner filed E. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te judge awarded enhanced compensation of Rs. 1,37,249.57 together with interest. Interest, accrued on that enhanced compensation, was treated as the income of the petitioner for the year 1995-96. The short question is whether the Government was justified in treating the interest portion of Rs. 1,64,473.86 as the income derived by the petitioner for the year 1995-96. Interest on enhanced compensat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that the interest relates back to the date of dispossession of the property on which date compensation becomes payable whatever be the time taken to finally settle the quantum of compensation. Even assuming that the court had the discretion not to grant interest, once it is granted, the right to receive interest relates back to the date of dispossession as is the case in the case of interest aw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .06 is illegal. The amount of interest should have been spread over for the period from March 2, 1987, to July 20, 1995. Section 197A(1A) of the Income-tax Act, 1961, is in the following terms : " Notwithstanding anything contained in section 194A or section 194K, no deduction of tax shall be made under either of the said sections in the case of a person (not being a company or a firm), if suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
