Bombay H.C : The agricultural lands owned by the assessee was acquired by the Government in 1989 under the Land Acquisition Act.

High Court Of Bombay

CIT vs. Abdul Mannan Shah Mohammed

Sections 5, 260A

S.H. Kapadia & A.P. Shah, JJ.

ITA No. 21 of 2000

28th February, 2000

Counsel Appeared

R.V. Desai with J.P. Deodhar, for the Appellant : L.S. Devani, for the Respondent

JUDGMENT

By the court :

The agricultural lands owned by the assessee was acquired by the Government in 1989 under the Land Acquisition Act. The assessee filed a civil suit. An award of Rs. 33,80,172 was made in favour of the assessee. Beingaggrieved, the State Government moved the High Court against the decision of the reference Court. At this stage, it may be mentioned that the said amount of Rs. 33,80,172 included an amount of Rs. 13.50 lakhs as interest on theadditional compensation. Pending the appeal, the assessee was permitted to withdraw the amount on giving security. The question which arises for determination is whether the additional compensation which was deposited in the Court and permitted to be withdrawn was taxable at that stage. Secondly, whether the said amount could be taxed when it was specifically deposit by the Government in appeal to the High Court. In the case of CIT vs. Hindustan Housing & Land Development Trust Ltd. (1986) 58 CTR (SC) 179 : (1986) 161 ITR 524 (SC) : TC 39R.624, the Supreme Court has held that when the Government has appealed against the award and the additional amount of compensation was deposited in the Court, it was not taxable at that stage as the additional compensation would not accrue as income when it was specifically disputed by the Government in appeal. In view of the said judgment of the Supreme Court, there is no merit in this appeal. No substantial question of law arises. The judgment of the Supreme Court, on facts, squarely applies to the facts of the present case. Hence, the appeal is dismissed.

[Citation : 248 ITR 614]

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