JABAR MAL DUGAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD Mr. Rajendra Mehta learned counsel for the applicant assessee and Mr. L.M. Lodha learned counsel for the Revenue.

(2.) THIS is an application under S. 256(2) of the IT Act, 1961, arising out of the order of the Tribunal, Jaipur Bench, Jaipur, rejecting the Ref. Appln. No. 117/Jp/1990 dt. 24th Jan., 1991, pertaining to the asst. year 1982 83 refusing to refer the following questions of law arising out of the order of the Tribunal in ITA No. 484/Jp/1986 dt. 15th Feb., 1990 :

(3.) IT is contended by Mr. Rajendra Mehta, learned counsel for the petitioner assessee, that the issue of spreading over of the interest over year of actual payment to year of actual receipt instead of being charged as accumulated sum in the year in which the interest has been received, is a question of law and not a question of fact. In this context the learned counsel has placed reliance on a decision of the apex Court in Rama Bai vs. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) : TC 39R.668, wherein the Court dealing with the case of compensation for land acquisition held that interest of enhanced amount of compensation awarded by the Court on a reference under s. 18 of the Land Acquisition Act, on further appeal has to be taken to have accrued not on the date of the order of the Court granting enhanced compensation but having accrued year after year from the date of the delivery of possession of the land till the date of such order and such interest cannot be assessed to income tax in one lump sum in the year in which the order is made.