2004 (11) TMI 580

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....: D. D. Chopra ORDER This petition has been filed, challenging the order of Chief Commissioner (Admn.), U.P./Commissioner of Income-tax, Lucknow dated 29-3-1985. 2. A notice under section 263 of the Income Tax Act was issued for enhancing the tax on the ground that the petitioner had been awarded and had received compensation towards the acquisition of his plot under the Land Acquisition ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urts including of Madras High Court wherein such spread over was permitted. The Madras High Court in the case of CIT v. Q.K.S. Murugappan 1987 ITR 22 (sic) held as follows: "that the entire interest income so received should be divided proportionately in the different years from the date of acquisition till the date of judgment." 5. Chief Commissioner however did not rely upon the said....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....has been upheld by the Supreme Court in its order dated 12-2-1987: CIT v. T.N.K. Govindarajulu Chetty (1987) 165 ITR 231 wherein the Apex Court has held that such a spread over in the respective years to the extent can be allowed particularly when the mercantile system of the account has been the basis on which the interest income accrued. In this case there is specific averment in paragraph 10 of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e-tax department, an interim stay order was passed on 8-5-1985, which is still in force. The court has, thus applied its mind and had entertained the writ petition by giving time to the respondent to file counter-affidavit and by passing an interim order. The writ petition which is pending for the last more than 19 years in which an interim order is also continuing in favour of the petitioner and ....