- (1.) THIS petition has been filed, challenging the order of Chief Commissioner (Admn.), U.P./Commissioner of Income -tax, Lucknow dated 29 -3 -1985.
(2.) A notice under section 263 of the Income Tax Act was issued for enhancing the tax on the ground that the petitioner had been awarded and had received compensation towards the acquisition of his plot under the Land Acquisition Act by way of enhancement by the order dated 28 -12 -1979 in the assessment year 1980 -81. A reply was submitted by the petitioner. The Chief Commissioner (Admn.) /Commissioner of Income -tax, Lucknow after considering the plea raised by the petitioner, however, came to the conclusion that the petitioner was liable to make payment of income -tax on the interest awarded and paid in that very year for which the assessment was made and the payment was received. The plea of the petitioner that the interest received by him be bifurcated on accrual basis with effect from the assessment years 1973 -74 to 1980 -81 was not found to be in consonance with the provisions of the Act by the Chief Commissioner of Income -tax.
(3.) VARIOUS authorities were cited before the Commissioner of different High Courts including of Madras High Court wherein such spread over was permitted. The Madras High Court in the case of CIT v. Q.K.S. Murugappan 1987 ITR 22 held as follows: 'that the entire interest income so received should be divided proportionately in the different years from the date of acquisition till the date of judgment.';