ADDITIONAL COMMISSIONER OF INCOME TAX Vs. VIRENDRA SINGH

JUDGEMENT

(1.) THE assessee, a retired Deputy Collector, owned certain lands. In February, 1959, the Bihar Government acquired an area of 23'7 acres belonging to the assessee. THE compensation was determined at Rs. 86,070-92, including interest of Rs. 2,506'92 up to the end of August, 1959. This amount was paid to the assessee. THE assessee felt dissatisfied. He made a reference to the District Judge, who gave an award on 12th January, 1962, determining the compensation payable to the assessee at Rs. 6,99,648.50. On appeal by the Bihar Government, the Patna High Court, by an order of 28th September, 1967, determined the compensation at Rs. 3,32,632.50. This was in addition to the amount fixed by the Land Acquisition Officer. On this additional amount the assessee was paid an interest amounting to Rs. 1,68,176 which was actually paid on 16th December, 1967.

(2.) THE assessee filed returns for the years 1960-61 to 1968-69, spreading over the amount of interest in these various years. THE ITO upheld the spread-over and taxed the assesses on his returns.

(3.) AT the instance of the Commissioner the Tribunal has solicited our opinion on the question whether the amount of Rs. 1,68,179 was taxable in the assessment year 1968-69 or in the previous years beginning from 1960-61.