TaxTMI 
TaxTMI 
1982 (7) TMI 45
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....in the hands of the assessee-company maintaining its accounts under the mercantile system ? " The assessee is a private limited company. It maintained accounts on the mercantile system with the previous year as the calendar year. The relevant assessment year was 1970-71 and the total income was assessed by the ITO at Rs. 1,44,437 inclusive of Rs. 45,996 as income from other sources in respect of the requisitioned portion of the premises at "Stephen House ". The ITO observed that the circumstances being the same as in the last year, the rent receivable from the Govt. of West Bengal in respect of a portion of the 4th floor of the " Stephen House " requisitioned by the West Bengal Govt. was assessed as income of the assessee from other source....
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....nt year. The departmental representative, on the other hand, supported the AAC and referred to certain authorities. The Tribunal discussed the case law and the contentions raised by both sides in paras 5-9 of its order dated July 4, 1973. It concluded that no income by way of monthly compensation from the Govt. of West Bengal accrued to the assessee during the relevant previous year and, therefore, it set aside the AAC's order and the ITO was directed to delete the addition of Rs. 45,996 from the instant assessment. The point which is canvassed before us on behalf of the Revenue is that in this case there has actually been a decision of the Land Acquisition Collector holding that the rent is to be paid to the assessee and that the Collecto....
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....g the amount of compensation and as such the decision of the Land Acquisition Collector could not be sustained. The Calcutta High Court directed the Land Acquisition Collector to go into the question afresh. This order was affirmed by the appeal court as the assessee did not seriously press the appeal. The Calcutta High Court in the meantime directed the advocate on record of the assessee-company to hold the amount of compensation of Rs. 3,37,372.85 until further order of the court. In the context of these facts it cannot be said that the assessee is entitled to get the compensation from the Land Acquisition Collector in this case. The assessee's right to get compensation is very much in dispute. This is not a case where the assessee is en....