1988 (2) TMI 96

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....erred to as "the Acquisition Act"). Under the provisions of the Acquisition Act the Dy. Commissioner of Urban Land Ceiling and Taxation determined the amount of compensation payable to the assessee at Rs. 1,15,574 for the bus MYA 6169 on 29-12-1980 and Rs. 69,687 for the bus MYA 2334 on 27-9-1980 out of which Rs. 20,000 each were paid on 12-3-1976 and 7-3-1977 and the balance was ordered to be payable as follows : MYA 6169 Rs. MYA 2334 Rs. 1. 30-1-1978 11,410-90 30-1-1978 6,210-88 2. 30-1-1979 11,410-90 30-1-1979 6,210-88 3. 30-1-1980 11,410-90 30-1-1980 6,210-88 4. 30-1-1981 11,410-90 30-1-1981 6,210-88 5. 30-1-1982 11,410-90 30-1-1982 6,210-87 6. 30-1-1983 11,410-90 30-1-1983 6,210-87 7. 30-1-1984 11,410-90 30-1-1984 6,210-87 8. ....

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.... the date on which the instalment became due, and not in the previous year in which the orders determining the compensation were passed. For this purpose, he relied upon the decision in the case of CIT v. Bharat Lines Ltd. [1986] 159 ITR 541 (Bom.). He further argued that in the case of CIT v. Sheshappa Hegde [1984] 150 ITR 164 (Kar.) the only question for decision was whether the compensation under the Acquisition Act in the said case became due in the assessment year 1976-77 and as such, the profit under s. 41(2) of the Act was to be computed in the said assessment year 1976-77. He further submitted that the decision of the High Court in the said case has to be read in this context and cannot be extended to lay down that the amount of com....

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....essment year 1976-77, and that profit under s. 41(2) of the IT Act, 1961, cannot be computed for the assessment year 1976-77 ?" So, we agree with the authorised representative for the assessee that the question before the High Court was whether the entire compensation was to be taxed in 1976-77 when the acquisition was made and not whether the instalments were to be taxed in the assessment years in which they were receivable by the assessee. His contention that money payable is not equivalent to money due finds support in this decision of the High Court in the case of Sheshappa Hegde which expressly observes at page 168: "money payable sometimes means only the money due". Money would not become due unless it is payable. But, in the context....