9911796707
TMI Blog1989 (5) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... o. (i) is in the negative, whether, on the facts and in the circumstances of the case, income from interest on compensation awarded by the statutorily designated authority is not assessable only for the year in which the interest is awarded or quantified by such order of such authority ?" The assessee, O. T. Rahman, owned 54 bighas 3 khathas and 17 lechas of land and that land was acquired under the Land Acquisition Act I of 1894, After the market value of the land was determined by the Land Acquisition Officer, a reference was made to the civil court and later, an appeal to the High Court was made at the instance of the landholder, the assessee. Compensation was ultimately fixed by the High Court on April 29, 1974. The question raised is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before a notification is published. There are cases where, simultaneously with the publication of the notification, due to urgency, land is taken possession of. There are also instances where possession is taken long after the publication of the notification. In all the cases, in common law, it is held that a person dispossessed is entitled to interest over and above the market value of the land from the date of taking over of possession. There are instances in statutes where no specific mention is made as to payment of interest. It is now held that acquisition is a compulsory purchase and that the landholder is entitled to interest and solatium in common law. When does the interest accrue to the landholder ? This question is burning fire i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it would award interest on the excess compensation and, therefore, it was held that only on the day when the decree for interest is passed, it should be taken to have been received by the assessee. In the case of the Orissa High Court in Joyanarayan Panigrahi v. CIT [1974] 93 ITR 102, the assessee contended that the interest accrued during the assessment year alone could be taken into account and that the entire amount was not available to be considered during the assessment year merely on the basis that that amount had been paid to the assessee. The Madhya Pradesh High Court in CIT v. His Highness Maharaja Yashwant Rao Pawar [1981] 127 ITR 650 on the issue, held at page 654, that interest accrues or arises from the time possession o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court (at p. 282) : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the amounts receivable by the assessee on account of transfer of contracts to third parties were revenue receipts taxable in the assessment years 1964-65, 1965-66 and 1966-67 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the amount receivable under agreements dated October 1, 1963, and September 30, 1963, accrued to the assessee on the dates of contracts and not on the dates when the instalments became payable under the agreements ? " This court held that, ordinarily, people keep accounts on the cash system, that is to say, when a certain sum is recei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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