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TMI Blog1993 (8) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... h the assessment years 1979-80 and 1981-82. The assessee-company owned tea estates in India. The estates were sold to Messrs. Ram Bahadur Thakur (P.) Ltd. The document of transfer was executed on September 17, 1976 (annexure "A-5"). While making the assessment for the year 1979-80, dated December 26, 1985, the Income-tax Officer granted interest under section 214 of the Act on May 2, 1978, in the sum of Rs. 11,890. Similarly, while effecting the assessment order for the year 1981-82, the Income-tax Officer included interest under section 214 granted on October 22, 1980 (1977-78), in a sum of Rs. 2,52,180 and interest granted on February 18, 1980 (1976-77), in the sum of Rs. 42,166. On appeal, the Commissioner of Income-tax (Appeals), by ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reinbelow " . . . . the vendor doth hereby assign and transfer unto the purchaser. (a) . . . . . . (b) . . . . . . (c) all the benefits, advantages or licences and quota rights connected with or incidental to the said plantation, cultivation, manufacture, trade, business or sale ; (d) all and singular the book and other debts now due and owing or hereafter to become due and owing to the vendor on account of the said plantation, cultivation, manufacture, trade, business, or sale and the benefit of all contracts and orders for the sale, supply or manufacture entered into by the vendor in respect of the said plantation, cultivation, manufacture, trade, business or sale, the particulars of which debts and contracts are contained in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the interest awarded to the respondent/assessee under section 214 of the Income-tax Act shall be considered to be a refund specified in clause 5(c) of annexure "A-5" agreement. A Bench of this court in Jose T. Mooken v. CIT [1979] 117 ITR 894, at pages 907 and 908, stated thus : ". . . . really the interest that is due on the refund is in the nature of a compensation which might represent the profit which the assessee could have made if he had had the use of money or which might represent the loss which he suffered because he had not that use. It is compensation for the deprivation of the money for the period. In that view (and that view has been accepted in Lord Wright's passage which has been quoted with approval by the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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