- (1.) IN these reference cases, the following question has been referred for the opinion of this Court by the INcome-tax Appellate Tribunal, Jaipur Bench, Jaipur (hereinafter referred to as "the Tribunal"): "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that a sum of Rs. 16,758 received as interest from the Union bank of INdia on Rs. 2,31,020, the amount received under the interim award given by the Rajasthan High Court, is taxable in the hands of the appellant ?" These references relate to the asst. yrs. 1973-74, 1974-75 and 1975-76.
(2.) THE facts, briefly stated, and as set out in the statement of the case, are that Firdose Manzil, a building belonging to the applicant, A. K. Allarakha (hereinafter referred to as "the assessee") was acquired by the Government of Rajasthan under the provisions of the Rajasthan Land Acquisition Act on 13th March, 1965. THE Land Acquisition Officer valued the said property for the purpose of compensation at Rs. 6,92,317. THE State Government challenged the said award made by the Land Acquisition Officer before the civil Court and the civil Court valued the property for the purpose of awarding compensation at Rs. 5,68,343. THE Government of Rajasthan filed an appeal before this Court against the said decision of the civil Court. During the pendency of that appeal, this Court passed an interim order dt. 17th Aug., 1971, whereby it was directed as under : "Mr. C. K. Garg, after instructions from his clients, stated that the Government should pay half of the amount due under the award of the civil Judge, Ajmer, together with interest that has accrued so far on the entire amount and should further pay interest on the remaining half amount every year in the first week of January and he undertakes to refund the amount with interest in case the appeal succeeds. He will not press at this stage immediate payment of the remaining half amount. THE suggestion made by counsel of the respondent is reasonable and cannot be opposed by the learned Advocate General. We accept the suggestion by counsel for the respondent and order that the State should pay within three months the amount due under the award of the civil Judge, Ajmer. THE State shall also pay the amount of annual interest every year in the first week of January. THE respondent should furnish security for the refund of the amount to the satisfaction of the civil Judge in case the appeal succeeds." In accordance with the said order, a sum of Rs. 2,31,020 was received by the assessee and that amount was deposited by the assessee in fixed deposit with the Union Bank. THE assessee received a sum of Rs. 16,758 as interest on the said deposit for each of the asst. yrs. in question. THE ITO treated the said amount of Rs. 16,758 as part of the income of the assessee for all the three assessment years under consideration. THE said order of the ITO was affirmed by the AAC as well as by the Tribunal. THEreupon, the assessee moved the Tribunal for referring the question of law arising out of the order of the Tribunal to this Court and the Tribunal has referred the question mentioned above for the opinion of this Court. During the course of hearing of the reference case, Shri Surolia, learned counsel for the Revenue, pointed out that the appeal filed by the Government of Rajasthan against the decision of the civil Court with regard to the amount of compensation payable to the assessee has been dismissed by this Court and in view of the dismissal of the appeal, there is no question of refund of the amount received by the assessee in pursuance of the order of this Court dt. 17th Aug., 1971, and, therefore, the question which has been referred for the opinion of this Court is purely academic in nature. Shri Singhal, learned counsel for the assessee, does not dispute the fact that the appeal filed by the State Government has been dismissed by this Court and the assessee could not be required to refund the amount received by him in pursuance of the interim order dt. 17th Aug., 1971, passed by this Court. In the circumstances, the question which has been referred by the Tribunal has become merely academic and no purpose will be served in going through the same. In the circumstances, the reference are returned unanswered on the ground that the question which has been referred is merely academic in nature. No order as to costs.;