The C.I.T.Madras Vs. T.N.K.Govinda Raju Chetty
EmailAppeal: Civil Appeal No, 299 and 3009 of 1974.
Petitioner: The C.I.T.Madras
Respondent: T.N.K.Govinda Raju Chetty
Apeal: Civil Appeal No, 299 and 3009 of 1974.
Judges: RANGANATH MISRA & M.M.DUTT, JJ.
Date of Judgment: Feb 12, 1987
Appearances:
Mr. A.Subhashini Advocate, for the Petitioner.
Mr. V.S. Desai, Senior Advocate & Mr. A.T.M. Sampath, Advocate, for the Respondents.
Head Note:
INCOME TAX ACT, 1922
Accrual of income – Mercantile system of accounts – Income from interest to be spread over the respective assessment years to the extent to which it could be deemed to have accrued.
JUDGEMENT:
ORDER
1. The only question in this appeal is whether the Income Tax Appellate Tribunal was right in holding that income from interest which had accrued to the respondent on the compensation payable to him in view of the acquisition of land belonging to him for the assessment years 1955-56 and 1956-57 should be spread over the respective years to the extent to which it could be deemed to have accrued in those years. We have considered the matter carefully and we think that having regard to the circumstances of the case, including the fact that the mercantile system of account was the basis on which the interest accrued, the High Court was right in answering the question in favour of the assessee and against the Revenue.
2. The appeals are, therefore dismissed. In the circumstances there is no order as to the costs.
Appeal dismissed.
1. The only question in this appeal is whether the Income Tax Appellate Tribunal was right in holding that income from interest which had accrued to the respondent on the compensation payable to him in view of the acquisition of land belonging to him for the assessment years 1955-56 and 1956-57 should be spread over the respective years to the extent to which it could be deemed to have accrued in those years. We have considered the matter carefully and we think that having regard to the circumstances of the case, including the fact that the mercantile system of account was the basis on which the interest accrued, the High Court was right in answering the question in favour of the assessee and against the Revenue.
2. The appeals are, therefore dismissed. In the circumstances there is no order as to the costs.
Appeal dismissed.
