COMMISSIONER OF INCOME TAX Vs. A K MANDAL

JUDGEMENT

(1.) THESE are references under s 256(1) of the IT Act 1961. The question referred to us for our opinion is :

(2.) LEARNED Senior Standing Counsel for the IT Department endeavoured to convince us once again that the law in Bihar would be governed by the decision of the Supreme Court in Chandroji Rao vs. CIT, Madhya Pradesh (1970) 77 ITR 743 (SC) and not by the decision in S. R. Y. Sivaram Prasad Bahadur vs. CIT, Andhra Pradesh (1971) 82 ITR 527 (SC) : AIR 1972 SC 260. I regret, I am unable to take a view different from what was taken in two Division Bench decisions of this Court. For the reasons, mentioned in these decisions, I am of the view that in this case as well the ad -interim payments of Rs. 7,000 and Rs. 15,117 under the Bihar Land Reforms Act, 1950 were payments of capital nature and were not liable to tax in the relevant assessment year.