SREEPADAM HUF Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE common question in these I.T.Rs. reads as follows :

(2.) THE question in I.T.Rs. Nos. 360 to 363 of 1985 reads as follows:

(3.) THE assessment years are 1974 75 to 1977 78. The assessee is the Sreepadam Palace whose lands were enfranchised, on payment of compensation, under the Sreepadam Lands Enfranchisement Act, 1969 (Act 20 of 1969). The Sreepadam lands are defined under the Act as lands comprised in certain areas of the Chirayinkil Taluk, the Revenue from which had been wholly assigned in favour of the Sreepadam Palace, as well as certain other lands owned by the Sreepadam Palace. Some of the lands owned by the Sreepadam Palace were tharissu which are referred to in S. 2(j) and in respect of which compensation was payable under the Act in a lump sum bearing interest at the rate of 5 per cent. per annum from the appointed day. We are not concerned with tharissu. In respect of the other lands which are specifically referred to in S. 2(i), the compensation payable was in the form of annuity in perpetuity at the rate of Rs. 31,075 per year. There is some dispute as to whether the Sreepadam Palace had any proprietary right in the lands mentioned in S. 2(i). Whatever be the nature of the right which the assessee had in those lands, the compensation provided under the Act is in the form of annuity payable in perpetuity.