1980 (2) TMI 72

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....n application by the Commissioner of Income-tax under s. 256(2) of the I.T. Act, 1961 (which will hereinafter be referred to as " the Act "), requiring the Tribunal to state a case and refer the following two questions of law for the decision of this court: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the right to receive intere....

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....m November 24, 1955, to January 1, 1963, which was paid during the accounting year relevant to the assessment year 1973-74. The ITO included the aforesaid amount of interest in the total income of the assessee for the assessment year 1973-74. Aggrieved by the decision of the ITO, the assessee filed appeal before the AAC, who confirmed the order of the ITO in this respect. Thereupon, the assessee f....

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....compensation and reads as under : " 26. Liability to pay compensation.--(1) Subject to the other provisions of this Act, the Government shall be liable to pay to every jagirdar whose jagir lands are resumed under section 21, such compensation as shall be determined in accordance with the principles laid down in the Second Schedule. (2) Compensation payable under this section shall be due as ....

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....mpensation was held to accrue from the date of deprivation of property under s. 34 of the Land Acquisition Act. It was further held that interest accrued to the assessee each year, and was payable as such after possession of the land was taken from the owner. In T. N. K. Govindarajulu Chetty v.CIT [1973] 87 ITR 22 (Mad), it was held that the liability to pay interest would arise when the compen....