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TMI Blog2007 (1) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was right in law in holding that the amount of interest on enhanced compensation received in June, 1985 in consequence upon judgment of distt. judge and the amount having been utilised/invested in discretion of the assessee, was not includible in the total income of the assessee ?" 2. Briefly the facts, as mentioned in the statement of the case, are that the agricultural land belonging to the assessee was acquired by the Punjab State Electricity Board in 1962. During the assessment year in question, the assessee received enhanced compensation and interest to the tune of Rs. 11,87,485 and Rs. 17,06,686 respectively. The Assessing Officer held that the entire amount of interest received at Rs. 17,06,686 was assessable in the assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Income-tax (Appeals) directing the assessment of only interest pertaining to the assessment year in question. However, the assessee, being still aggrieved, preferred an appeal before the Tribunal. The Tribunal relying upon the decision of the hon'ble Supreme Court in Hindustan Housing and Land Development Trust Ltd. [1986] 161 ITR 524 accepted the appeal of the assesses and directed that as the matter regarding compensation had not attained finality but was still fluid, no amount of interest should be held to be taxable. 3. We have heard learned counsel for the Revenue. However, no one has chosen to put in appearance on behalf of the assessee. The primary contention raised by learned counsel for the Revenue is that the principles of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Bom), it was held as under : "Secondly, whether the said amount could be taxed when it was specifically deposited by the Government in appeal to the High Court. In the case of CIT v. Hindustan Housing and Land Development Trust Ltd. [1986] 161 ITR 524, the Supreme Court has held that when the Government has appealed against the award and the additional amount of compensation was deposited in the court, it was not taxable at that stage as the additional compensation would not accrue as income when it was specifically disputed by the Government in appeal. In view of the said judgment of the Supreme Court, there is no merit in this appeal. No substantial question of law arises. The judgment of Supreme Court on facts, squarely applies to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITR 524 (SC) rejected the petition filed by the Revenue under section 256(2) of the Income-tax Act (for short, "the Act") seeking to refer the following question of law for opinion of the court (at page 673 of 215 ITR) : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in dismissing the Departmental appeal and holding that the interest accrued on compensation could be assessable only after the enhanced compensation had been finally determined with the interest earned by the assessee during the year under consideration and had nothing to do with the compensation/ enhanced compensation ?" 7. In its opinion, the issue was covered against the Revenue. The Karnataka High Court in Sm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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