TaxTMI 
TaxTMI 
2005 (1) TMI 62
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....ount of interest income accrued on FDRs of the assessee even when the said interest income was free from all encumbrances and was liable to be taxed as per the provisions of the Income-tax Act, 1961?" The assessee-respondent is a surgeon who filed his return for the assessment year 1994-95 declaring an income of Rs. 4,41,116 on January 25, 1995. The income of the assessee included the income of his minor son of Rs. 1,02,641 and agricultural income of his minor son of Rs. 1,89,000 from a private trust. The assessment in the case was completed under section 143(3) of the 1961 Act on March 26, 1997, at an income of Rs. 21,02,940 which included Rs. 10,79,858 on account of interest accrued on fixed deposit receipts deposited in the State Bank o....
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.... 5,44,531 76,65,016 27-7-1992 14,63,192 1,26,128 13,37,064 28-10-1993 19,56,665.75 1,40,661 18,16,004 23-2-1994 3,27,045 36,629 2,90,416 7-9-1994 --------------------------------------....
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....8 996452 30-7-1993 to 31,695 (Inst. on 31-3-1994 above FDR 333574/112  ....
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....,113 1-2-1994 to 4,163 31-3-1994 ---------- &n....
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.... acquisition itself was under challenge but in the present case, the quantum of compensation is only under challenge. Shri Akshay Bhan, learned counsel appearing for the assessee, on the other hand, submitted that the absolute ownership of the principal amount of the fixed deposit receipts itself is in dispute and, therefore, the interest received/receivable from the bank on these fixed deposit receipts cannot be treated as free from encumbrances and included in the total income. He further submitted that in case the assessee is required to return the enhanced compensation then he would also be liable to return the same along with interest thereon and, therefore, till the case is finalised, it cannot be treated as income. His further submi....