- (1.) The question involved in these cases is regarding the point of time at which the interest payable under S. 28 and 34 of the Land acquisition Act (Act 1 of 1894 accrues or arises, where such interest ispaid on enhanced compensation awarded on a reference under Section 18 of the said Act or further appeal to the High court and/or Supreme court. Some of the matters before us are appeals and some are references under S. 257 of the Income Tax Act, 1961. These references were made directly to this court in view of the fact that there was a conflict of decisions among the High courts on the above issue. We do not think it is necessary to refer to those decisions because we find that the question at issue is now concluded by the decision of this court in commissioner OF INCOME TAX v. T. N. K. Govindarajulu Chetty, Though the judgment is a short one, it deals directly with the point in issue. It is also clear, from a perusal of the judgment of the High court, which was upheld by the supreme court in this matter that the issue has been considered by this court in all its aspects. The principle of the decision also derives support from the earlier decision of this court in Khorshed Shapoor Chenai v. ACED. In these circumstances, we are of the opinion that the appeals before us (C. A. No. 810 of 1974 and C. A. No. 3027 of 1988 have to be allowed and 'the references made under S. 257 (Tax Ref. Cases nos. 3 of 1976 and 1-3 of 1978 have to be answered by saying that the question of accrual of interest will have to be determined in accordance with the above decision of this court. The effect of the decision, we may clarify, is that the interest cannot be taken to have accrued on the date of the order of the court granting enhanced compensation but has to be taken as having accrued year after year from the date of delivery of possession of the lands till the date of such order.
(2.) These matters are disposed of accordingly. There will be no order as to costs.
(3.) The petition have already been allowed and we have also heard Sri T. A. Ramachandran, advocate, appearing for them. No further orders are necessary on these petitions.;