COMMISSIONER OF INCOME TAX ANDHRA PRADESH Vs. SUNKARI MANICKYAMMA
LAWS(APH)-1972-10-3
HIGH COURT OF ANDHRA PRADESH
Decided on October 27,1972

COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH Appellant
VERSUS
SUNKARI MANICKYAMMA Respondents

JUDGEMENT

Lakshmiah, J. - (1.) At the instance of the Commissioner of Income-tax, the Income-tax Appellate Tribunal referred under section 256 (I) of the Income-tax Act, 1961, referred to hereinafter merely as 'the Act' the following question for pur decision: " Whether on the facts and circumstances .of the case, the entire interest amounting to Rs. 31,659 received on the 1st of March, 1964 or only a sum of Rs. 1,260 the interest attributable to the year ending 31st of March, 1964, was assessable as income for the assessment year 1964-65."
(2.) The assessment year, in the instant case, is 1964-65 for which the Department adopted the relevant accounting year as the year ending with 31st March, 1964.
(3.) The assessee is en individual and she has had her agricultural land situated at Rayaghada, acquired by the State Government of Orissa under the Land Acquisition Act sometime in the year 1933, and as the amount awarded towards the compensation was found to be inadequate, the matter was taken before a Court of law ar d the matter ultimately culminated in a compromise decree being passed by the Orissa High Court on 9th May, 1963. As per the terms of that compromise the assessee was held entitled to receive an extra compensation of. Rs. 22,904 towards the value of the land and a further sum of Rs. 31,659 as interest at the rate of .6 per cent per annum for the period during which the said extra compensation amount remained due to the assessee. The assessee received the extra compensation amount as well as the said sum of Rs.31,659 on 1st March, 1964. Both the date on which the compromise decree was passed as well as the date on which the assessee received the said amounts fell during the relevant previous year. The assessee disclosed an income of Rs. 1,260 being the interest accrued for the relevant assessment year. She however, declared as the total amount of interest received, namely, the sum of Rs. 31,659, claiming that the entire amount of interest received during the relevant year was not chargeable to tax for that year.;


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