COMMISSIONER OF INCOME TAX Vs. JEEVAN AND SONS

JUDGEMENT

(1.) : Heard the learned counsel for the applicant.

(2.) BY this application moved under s. 256(2) of the IT Act, 1961, the applicant has prayed that the Tribunal be directed to refer following two questions to the High Court for decision : (i) Whether, on the facts and circumstances of the case, the Tribunal was justified in law in holding that the amount of compensation awarded to the assessee is not chargeable to capital gains tax ? (ii) Whether, on the facts and circumstances of the case, the Tribunal was justified in law in holding that the amount of interest accrued upon the amount of compensation is not chargeable to tax ?

(3.) THE Tribunal, by order dt. 29th Dec., 1997, allowed the appeal. It was held by the Tribunal that the amount of compensation as well as the interest thereon were not assessable as income for the asst. yr. 1991-92 because the order of the District and Sessions Judge, Sirohi, had not become final as an appeal against that order has been filed before the High Court and the amount of compensation was deposited on furnishing of bank guarantee by the assessee and the assessee was not permitted to withdraw the amount of compensation deposited by the State Government.