Bhagabati Prasad Banerjee, J. - (1.) The following three questions of law of which two questions at the instance of the assessee and one question at the instance of the Revenue, have been referred to this court by the Tribunal under Section 256(1) of the Income-tax Act, 1961 : Questions referred at the instance of the assessee : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the sum of Rs. 60,000 received by the assessee as compensation for loss of earnings from brick manufacturing business as mentioned in the award made by the Additional District Judge, Hooghly, represented a revenue receipt in the hands of the assessee for the assessment year 1967-68 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the sum of Rs. 1,250 received by the assessee as compensation for readymade earth lying on the acquired portion as mentioned in the award of the Additional District Judge, Hooghly, represented stock-in-trade of the assessee and was as such a revenue receipt assessable in the assessment year 1967-68?" Question referred at the instance of the Revenue : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that out of the entire amount of Rs. 48,526 representing interest on the enhanced amount of compensation received by the assessee, only that much thereof which accrued in the previous year relevant to the assessment year 1967-68 was taxable ?"
(2.) The assessment year involved in this reference is the assessment year 1967-68, for which the relevant period of account is the financial year ending on October 31, 1966.
(3.) The facts found by the Tribunal as narrated in the statement of case are as under : The status of the assessee is an individual. Certain plots of land belonging to the assessee and utilised by him for brick manufacturing business were acquired by the West Bengal Government under the provisions of the Land Acquisition Act. The Government took possession of the land on August 25, 1956. The Land Acquisition Collector determined the compensation at Rs. 1,533, which was received by the assessee on October 20, 1956. Dissatisfied with the award given by the Land Acquisition Collector, the assessee sought reference to the District Judge, Hooghly, and the Additional District Judge, Hooghly, by award dated June 26, 1966, determined the compensation under different heads as below : JUDGEMENT_740_ITR204_1993Html1.htm;