TaxTMI 
TaxTMI 
2004 (10) TMI 67
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....st of Rs. 1,98,238 was not liable to tax in the assessment year 1975-76 only?" Briefly stated the facts giving rise to the present reference are as follows: The reference relates to the assessment year 1975-76. One Smt. Khatoon Bibi, along with several other persons was owner of M/s. Noori Sugar Factory. Smt. Khatoon Bibi has gone to Karachi in 1947 and the Assistant Custodian, Evacuee Properties, had published a declaration that all the properties of Smt. Khatoon were evacuee property. On March 20, 1956, the Competent Officer held that a share of 6 paise in the property in dispute belonged to Smt. Azimunnisa Begum (the respondent) as the legal heir of Smt. Khatoon Bibi. There was a lot of litigation between the family members. In the int....
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....at the interest had accrued from year to year, therefore, the entire amount could not have been taxed in the assessment year 1975-76, was accepted. The Revenue's appeal before the Tribunal on this point has failed. However, the Tribunal has directed the Income-tax Officer to compute the amount of interest relatable to the assessment year 1975-76. We have heard Shri Shambhu Chopra, learned standing counsel for the Revenue, and Shri Gaurav Mahajan who appears for the respondent-assessee. The Tribunal while holding the amount of interest to have accrued during every year has held as follows: "There was at no stage any doubt that the amount of deposit did not belong to the competent authority, but that it belonged to the owners of Noori Sugar....