COMMISSIONER OF INCOME TAX WEST BENGAL II CALCUTTA Vs. HINDUSTAN HOUSING AND LAND DEVELOPMENT TRUST LIMITED

JUDGEMENT

(1.) This appeal by certificate granted by the High Court is directed against the judgment of the Calcutta High Court answering the following question in the negative:

(2.) The assessee who is the respondent before us, is a limited company dealing in land. It maintains its accounts on the mercantile system. By an order dated June 21, 1946 under Rule 75A(1) of the Defence of India Rules read with S. 19 of the Defence of India Act, 1939 certain plots of land measuring About 19.17 acres in village Kankulia in the District of 24 Parganas and belonging to the assessee, were requisitioned by the Government of West Bengal. Subsequently the land was acquired permanently by the State Government under S. 5, Requisition of Land (Continuance of Powers) Act, 1951 by a notice of acquisition dated December 27, 1952 published in the Gazette dated January 8, 1953. The Land Acquisition Officer awarded a sum of Rs. 24,97,249 as compensation payable to the assessee. The assessee was not satisfied with the amount of compensation, and preferred an appeal before the Arbitrator, 24 Parganas, Calcutta. The Arbitrator made an award dated July 29, 1955 whereby the fixed the amount of compensation at Rs. 30,10,873/- on account of the permanent acquisition of the land, thus enhancing the original amount of compensation by Rs. 5,13,624/- on which he directed interest at 5 per cent per annum from January 8, 1953, the date of acquisition, to the date of payment. The Arbitrator also directed that further recurring compensation at Rs. 6272/10/4 per mensem should be paid to the assessee from the date of the requisition till the date of the acquisition.

(3.) The State Government now appealed to the High Court and during the pendency of the appeal on April 25, 1956 it deposited Rs. 7,36,691/-, which the assessee was permitted to withdraw on May 9, 1956 on furnishing security. On receipt of the amount the assessee credited it in its suspense account on the same date.