JAIRAM M Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These References had been compelled by this Court under S.256(2) of the Income Tax Act and the Income Tax Appellate Tribunal, Cochin Bench was directed to refer the following questions of law for our determination viz:

(2.) The Assessee, an 'individual' was the owner of certain lands in Ernakulam the extent and the location of which do not appear from the record. The lands were acquired in 1962 by the State Government for the purpose of the Cochin Ship Building Yard. Compensation was awarded by the Land Acquisition Officer. The Assessee disputed the adequacy of compensation and had the matter referred to the Sub Judge, Ernakulam. By a decree dated 29-5-1969, the Sub Judge awarded additional compensation of Rs. 25,806/- with interest at the rate of 6% from the date of dispossession, which was on 11 5 1962. In the course of the accounting year 1969-70 (assessment year 1970-71) the Assessee received a sum of Rs. 10,322/- as interest on the additional compensation awarded. These are the facts in ITR. No. 29 of 1977 which was treated as the main case.

(3.) The facts are similar in ITR. No. 28 of 1977 which relates to a different assessee for the same assessment year 1970-71. Enhanced compensation of Rs. 41,787 was decreed by the Sub Judge on 29-5-1969 together with interest at 6% from the date of dispossession i.e. 11 5 1962. The interest received by the Assessee was Rs. 16,705/-. This was appropriated out of deposit made by the Government in Court on 20-11-1969.