VISALAKSHI ACHI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred for our decision is whether on the facts and in the circumstances of this case, the sum, of Rs. 12,258 -6 -6 received by the assessee is income chargeable under the IT Act.

(2.) THE relevant facts are these : The assessee owns an estate called Lakshmi Gardens in Ceylon. This estate is worked as one unit along with another estate called Mallewanitiva Estate. Both the estates were taken over by the military authorities and were in their occupation between June, 1942, and September, 1946. After the military authorities surrendered possession to the assessee, she sent in a claim for damages amounting to Rs. 23,673 -15 -0. This claim of the assessee was eventually settled by the military authorities by payment to her of a sum of Rs. 12,258 -6 -6. The IT authorities treated this amount as income and charged tax on it. The appeal to the Asstt. CIT failed. A further appeal to the Tribunal proved equally unsuccessful. Finally, the assessee came to this Court and under S. 66(2) of the IT Act the Tribunal was directed to state a case on the question quoted above.

(3.) AMONG the other items claimed is a sum of Rs. 5,768, for the loss of some 305 cocoanut trees which the army authorities had apparently cut down. Similarly, there is a claim for a sum of Rs. 815 at the rate of Rs. 5 per tree for 162 arecanut trees. Then there is another claim for 9 jack trees at Rs. 35 each.