COMMISSIONER OF INCOME TAX Vs. ZANJALE N K

JUDGEMENT

(1.) THE Tribunal has referred the following question to us under S. 256(1) of the IT Act, 1961 :

(2.) . The short facts leading to the making of this reference are as under :

(3.) THE Tribunal is right in taking the above view. Learned counsel for the Revenue has fairly invited our attention to the recent judgment of the Supreme Court in Rama Bai vs. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC). In this case, it was held by the apex Court that interest on enhanced compensation for land compulsorily acquired under the Land Acquisition Act, 1894, could not be taken to have accrued on the date of the order of the Court granting enhanced compensation, but the same was liable to be treated as having accrued year after year from the date of delivery of possession of the land till the date of such order. It was held in this case that such interest could not be assessed to income tax in one lump sum in the year in which the order was made.