1988 (11) TMI 138

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....le for assessment year 1981-82 ending with 31-3-1981 was Rs. 17,259 and the interest payable as on 29-3-1982 was Rs. 32,047. By another letter dated 26-9-1984 the assessee stated that the compensation as well as interest received were of capital nature and the interest is not his income and requested to delete the interest income from the total income. It is also the claim of the assessee that assuming the amount of interest is assessable in his hands it should be assessed in two respective assessment years viz., 1981-82, 1982-83 as they pertain to those two assessment years, and it should not be assessed in lump sum. It is admitted that the interest amount of Rs. 49,306 was received in the accounting year relevant to assessment year 1982-8....

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....termination, apportionment and payment of compensation. Under sec. 15(1) it is stated that compensation shall be due from the date of vesting and shall carry interest at the rate of two and three-fourths per annum from the date of vesting to the date of payment. The AAC held that the said Chapter III of that Act prescribes not only the mode of determination, apportionment and payment of compensation but also how compensation and interest should be quantified. It does not give a right to the assessee to receive the actual amount which does not even accrue. Unless the proceedings by the R.D.O. are concluded by passing an order determining the amount of compensation and interest which the appellant is entitled, he cannot have any right of inte....

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....ontinues to recur till it is eventually quantified. The interest receivable u/s 34 gets added up ipso facto and the same cannot be denied to the owner. They also held that sec. 34 interest is quite unlike the interest that is determined under sec. 28 of the Act, which depends upon the order of the final court that determines the enhanced amount of compensation, Therefore, the interest that was awarded along with the compensation was assessable from year to year right from the date on which the assessee was dispossessed of the land. From the facts of that case it was held that the entire interest could not be assessed in the assessment year 1970-71. 4. The learned D.R. on the other hand contended that interest accrued as and when the comp....

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....re is a provision in s. 28 of the Land Acquisition Act which gives a discretion to the Court which considers the claim of the assessee for higher compensation. The first category of the interest is assessable year after year, whereas, the second category is assessable all in a lump sum as and when such discretionary interest was granted under the orders passed in the enhancement proceedings. In fact there is no conflict between the Kerala High Court decision relied upon by the learned D.R. and the Andhra Pradesh High Court decision relied upon by the learned Advocate for the assessee. The only question to be determined is whether the interest with which we are concerned in this appeal is a discretionary interest or a statutory interest. The....