2007 (4) TMI 119

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....plications filed under section 256(2) of the Income-tax Act, 1961, the applicant-assessee seeks an order directing the Tribunal to forward the following questions of law for the opinion of this court. "(1) Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal erred in holding that the possession taken on April 1, 1979, was as per section 16 of the Land Acquisiti....

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....1981-82 and 1982-83. 3 In these cases, possession of agricultural land belonging to the assessee was taken over by the State Government for irrigation project by negotiations, even before initiating proceedings under the Land Acquisition Act. After taking over the possession of the agricultural lands, the land acquisition proceedings were initiated and on completion of the proceedings three awa....

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....able thereon would be capital receipt and not taxable. The assessee relied upon the decision of the Kerala High Court in the case of CIT v. Perlyar and Pareekanni Rubbers Ltd. [1973] 87 ITR 666. The Assessing Officer held that interest received from April 1, 1979, was revenue receipt and therefore taxable. 5 On appeal filed by the assessee before the Commissioner of Income-tax (Appeals), the Co....

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.... is where the possession of the immovable property is taken by the State Government even before initiating the proceedings under the Land Acquisition Act, and thereafter enhanced compensation is paid with interest, whether the amount of interest received — from the date of possession up to date of the award would be a capital receipt or revenue receipt ? 8 The decision of the Kerala High Cour....