KURIEN P V Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This is a reference by the Income Tax Appellate Tribunal, Madras Bench, under S.66(1) of the Indian Income Tax Act, 1922. The question referred is:

(2.) An area of land belonging to the assessee was acquired by the State under the provisions of the Travancore Land Acquisition Act, 1089. The compensation awarded was enhanced first by the District Court and then by the High Court, and on the enhanced amount, interest was directed at 6 per cent, per annum from the date on which the assessee was dispossessed by the State. That interest - Rs. 16,477 - is the interest specified in the question referred for decision.

(3.) The Travancore Land Acquisition Act, 1089, like the Indian Land Acquisition Act, 1894, contains two provisions regarding the grant of interest. They are S.25(3) corresponding to S.28 of the Indian Act, and S.31 corresponding to S.34 of the Indian Act. The provision with which we are concerned is sub-section (3) of S.25: