1996 (7) TMI 37

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....as delivered by SYED SHAH MOHAMMED QUADRI J.--In this reference under section 256(1) of the Income-tax Act, 1961, at the instance of the assessee, the following question is referred to this court for opinion, viz : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the entire sum of Rs. 2,49,883, being the interest receivable for the perio....

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....That plea was not accepted by the Income-tax Officer who assessed to tax the interest, received on compensation amount, in the year in which it was awarded by the civil court. Accordingly, the interest that accrued from June 3, 1958 to September 6, 1969, was assessed to tax in the assessment year 1970-71. The Appellate Assistant Commissioner on appeal held that as the enhancement of compensation w....

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....nd the references made under section 257 (Tax Reference Cases Nos. 3 of 1976 and 1 to 3 of 1978), have to be answered by saying that the question of accrual of interest will have to be determined in accordance with the above decision of this court. The effect of the decision, we may clarify, is that the interest cannot be taken to have accrued on the date of the order of the court granting enhance....