1984 (3) TMI 56

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....uhi West and Ghorawari and Hirdagarh were taken over by the Government under the Coal Mines Nationalisation Act, 1973. A compensation of Rs. 5,67,000 was determined payable by the Commissioner of Claims appointed under s. 17 of the said Act. It appeared that in addition to some assets of the assessee, the assets of the contractor employed by the assessee for exploitation of the mines, were lying in the mines. Under s. 26, sub-s. (5), of the Coal Mines Nationalisation Act, 1973, where any machinery or equipment or other property in the coal mine had vested in the Central Government or a Government company under the Act, but, such machinery, equipment or other property did not belong to the owner of such coal mine, the amount of compensation ....

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.... District Court under s. 26(5) of the Coal Mines Nationalisation Act, 1973, and as the court has not yet made an award of apportionment of compensation between the assessee and the contractor, the fact whether the assessee would be entitled to terminal loss under s. 32(1)(iii) or assessable to profit under s. 41(2) would become clear only after the District Court passes the award apportioning the compensation between the assessee and the contractor. The Tribunal, therefore, set aside the order of the Appellate Commissioner and also of the ITO and sent the case back to the ITO to pass an order after the award of the District Court is obtained on the question of apportionment of compensation. At the request of the assessee the Tribunal has ma....

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....mmercial Bank Ltd. v. CIT [1982] 137 ITR 434 (Cal). Learned counsel for the Revenue, on the other hand, contended that the Tribunal's order in no way disposes of the matter finally. It was contended that under s. 26(5) of the Coal Mines Nationalisation Act, jurisdiction is conferred on the District Court for apportionment of the compensation and it is only after the award of the District Court that it could finally be determined as to what amount of compensation will be available to the assessee and, therefore, on that basis it could be worked out as to whether there will be profit taxable under s. 41(2) or loss under s. 32(1)(iii) of the I.T. Act. It was contended that in view of the language of s. 26(5) of the Coal Mines Nationalisation A....

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....r claims what remains will be apportioned between the owner and the contractor in the light of the property and assets which the contractor may have lost on the coal mines. The only controversy is that according to the learned counsel for the assessee these are matters which could be ascertained by taking the price of articles lying on the coal mines and applying a scientific basis for assessment of it. It was contended that the contractor's claim for loss was accepted by the Tribunal as it was before a different Tribunal whereas the estimate of the assessee, the owner of the coal mines, based on the same basis has not been accepted by the Tribunal where this case was heard. Calcutta Co. Ltd. v. CIT [1959] 37 ITR 1 (SC), on which relianc....