1984 (2) TMI 74

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....of the case, the Tribunal was legally correct in holding that the entire interest of Rs. 7,288 was assessable during the assessment year under consideration ? " These questions have been raised as a result of the acquisition of certain agricultural lands belonging to the assessee under the Defence of India Act, 1939. It appears that part of the land was acquired under the Requisitioned Land (Continuance of Powers) Act, 1947, and part of the land was acquired under the Requisitioning and Acquisition of Immovable Property Act of 1952. Some compensation was offered to the assessee by the Land Acquisition Collector on December 16, 1957, but an agreement could not be reached. So, the matter was referred to arbitration of Shri G. R. Luthra (as....

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.... Act, nor was the interest paid under that Act. However, there is considerable authority for the view that even otherwise interest can be paid under the relevant provisions of the Defence of India Act and the Requisitioning and Acquisition of Immovable Property Act of 1952. Reference was made to Satinder Singh v. Umrao Singh, AIR 1961 SC 908, which was the case of Cis Sutlej Jagirs being acquired under the Punjab Requisitioning and Acquisition of Immovable Property Act, 1953. There also, when the land of the jagirdar was acquired, no interest was paid but the Supreme Court, reversing the judgment of the Punjab and Haryana High Court, held that interest was nevertheless payable. The Supreme Court indicated that the interest was payable in th....

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....ision relating to interest similar to ss. 28 and 34 of the Land Acquisition Act, but the interest is payable on general principles. What these principles are has been stated by the Supreme Court as follows (p. 915) : "During this period they have been deprived of the income of the property and they have not been able to receive interest from the amount of compensation. Stated broadly, the act of taking possession of immovable property generally implies an agreement to pay interest on the value of the property and it is on this principle that a claim for interest is made against the State. This question has been considered on several occasions and the general principle on which the contention is raised by the claimants has been upheld. " ....