COMMISSIONER OF INCOME TAX Vs. MAHAJAN K C

JUDGEMENT

(1.) THE following questions of law have been referred by the Income-tax Appellate Tribunal, Amritsar (for short "the Tribunal"), under Section 256(1) of the Income-tax Act, 1961 (for short "the Act") :

(2.) BASICALLY, the questions in both the assessment years (1977-78 and 1978-79) are identical.

(3.) THE assessee challenged the inclusion of the amount of solatium received by him from the Land Acquisition Collector under Section 23(2) of the Land Acquisition Act, 1894, with the plea that solatium was awarded not as part of the market value of the land but as compensation for the injured feelings of the assessee as owner of the land. THE Appellate Assistant Commissioner upheld the inclusion of the solatium in the total amount of compensation received by the assessee, in appeal for the assessment year 1977-78. However, in the next assessment year, the Appellate Assistant Commissioner, following the order of the Tribunal, took the view that the amount of solatium did not form part of the salt-price of the land.