M. M. DUTT, J.
1. The only question in these appeals is whether the Incometax Appellate Tribunal was right in holding that the income from interest which had accrued to the respondent on the compensation payable to him in view of the acquisition of land belonging to him for the assessment years 1955-56 and 1956-57 should be spread over the respective years to the extent to which it could be deemed to have accrued in those years. We have considered the matter carefully and we think that having regard to the circumstances of the case, including the fact that the mercantile system of account was the basis on which the interest income accrued, the High Court was right in answering the question in favour of the assessee and against the Revenue The appeals are, therefore, dismissed.
2. In the circumstances, there is no order as to costs.
Commissioner Of Income Tax, Madras v. T.n.k. Govindarajulu Chetty
Commissioner Of Income Tax, Madras v. T.n.k. Govindarajulu Chetty
(Supreme Court Of India)
CA No. 299 of 1974 and 300 of 1974 | 12-02-1987
Advocate List
- For
Bench
- HON'BLE JUSTICE M.M. DUTT
- HON'BLE JUSTICE R.S. PATHAK (CJI)
- HON'BLE JUSTICE RANGANATH MISRA
Eq Citations
- [1987] 165 ITR 231 (SC)
- (1987) 61 CTR SC 335
- JT 1987 (1) SC 689
- LQ/SC/1987/167
Head Note
Income Tax Act, 1961 — S. 4(1)(a) — Interest income — Computation of — Held, income from interest which had accrued to the respondent on the compensation payable to him in view of the acquisition of land belonging to him for the assessment years 1955-56 and 1956-57 should be spread over the respective years to the extent to which it could be deemed to have accrued in those years — Held, having regard to the circumstances of the case including the fact that the mercantile system of account was the basis on which the interest income accrued, the High Court was right in answering the question in favour of the assessee and against the Revenue (Paras 1 and 2)
