9911796707
TMI Blog1986 (3) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... 70. The assessee had acquired rights in the estate in 1945. The collector of Thana had recognised the assessee as the estate holder and its name had been registered in the records of rights. Disputes started by the advent of Bombay Tenancy and Agricultural Lands Act, 1948 which came into force on 28-12-1948. The Government issued notification under the said Act on 14-7-1949 applying the provision of the said Act to these lands of the assessee. By another notification dated 19-12-1949, issued under the provisions of the same Act, it declared the assessee as the land owner of these agricultural lands and further assumed the management of the estate under section 44 of the said Act, from 19-12-1949. The State Government was, through its office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the principal amount at 6 per cent up to the date of the payment. 3. As per the decree of the Court dated 4-9-1976 interest recoverable by the assessee from 11-4-1955 to 31-3-1977 aggregated to Rs. 3,51,047. 4. The accounting year relevant to assessment for 1978-79 is from 1-8-1976 to 31-7-1977. In the assessment for 1978-79, interest of Rs. 3,51,047 was brought to charge on the reason that the assessee became entitled to receive this amount on the date of decree (4-9-1976) and that the income had, therefore, accrued in this year. In the appeal also, the Commissioner (Appeals) conclude in the same way. Aggrieved by that, the assessee has preferred this second appeal. 5. The first contention of the assessee was that the principal a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Krishna Rao v. CIT [1983] 144 ITR 270 and the decision of the Madras High Court in CIT v. P. Mariappa Gounder [1984] 147 ITR 676. 7. The decision relied upon by Shri Mehta on K. Sadasiva Krishna Rao's case is a case pertaining to interest awarded by the Court while granting compensation for acquisition of land under the Land Acquisition Act, 1894. On this question, the High Courts of Karnataka, Kerala and Madhya Pradesh have taken the view that the same accrues from year to year and should be spread over and assessed in the year to which the interest relates. A contrary view is expressed by the Andhra Pradesh High Court in K. Sadasiva Krishna Rao's case, wherein it is held that interest receivable upon enhanced compensation is a discreti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can award interest on compensation amount awarded by the Court for which the statutory watermarks are sections 28 and 34 of the Land Acquisition Act. Even if it is the true position that accrual was only when the amount was quantified by the Court as held by the Andhra Pradesh High Court, it was in recognition of statutory right of the owner of the land to claim interest and since the case on hand is not one where interest was awarded on the statutory authority, the case law is not of real help. For these reasons, the rule in the cases cited by Shri Mehta also is not applicable. 10. The plaint presented by the assessee in Civil Suit No. 272 of 1963 and the judgment of the Court dated 4-9-1976 (copies) are in the compilation. The Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of each year and it includes interest for that year in view of its definition in section 2(12) of the Code of Civil Procedure, 1908. The Court could have not granted interest as damages (under section 73 of the Indian Contract Act, 1872) as it was not a case of breach of contract and the claim was not for debt or a certain sum. The basis on which interest was granted by the Court can be known from the following area of the judgment. It reads : "...... the defendant can be asked to pay interest in respect of the amount, as it wrongly withheld and retained amount which in fact out to have been given into the hands of the plaintiff and for that reason it can be also asked to pay interest on the same. The argument advanced on behalf of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
