(1.)In this appeal, which is filed after obtaining special leave, the Order dated 24th May, 1996 of the High Court of Delhi has been assailed. The main question involved is on the application and interpretation of the provisions of Section 150 of the Income-tax Act, 1961 (hereinafter referred to as the Act).
The relevant facts necessary for deciding the legal question raised are as under :-
1. The appellant's lands were acquired under Section 6 of the Land Acquisition Act and an award was passed on 2-12-1967 by the Chief Commissioner of Delhi granting compensation in favour of the appellant. The Additional District Judge by Judgment dated 20-5-1980 held the appellant entitled to 1/32 share of the compensation awarded under various awards and the appellant was granted total compensation in the sum of Rs.1,18,810/- approximately in the year 1981.
(2.)On a reference under Section 18 of the Land Acquisition Act, the learned Additional District Judge, Delhi vide his Judgment dated 31-7-1991 awarded a sum of Rs. 1,10,20,624/-. The amount was paid to the appellant between 15-10-1992 and 26-5-1993. The amounts paid represented principal sum of compensation of Rs. 41,96,496/- and interest in the sum of Rs. 76,84,829/- up to 18-5-1992. Before making the above payments, tax was deducted at source amounting to Rs. 8,60,701/-.
(3.)Since the land acquired were agricultural lands and were acquired prior to 1-4-1970, capital gains tax was not leviable but tax was leviable on interest earned on the amount awarded on year to year basis.