Commissioner of Income Tax vs Abdul Mannan Shah Mohammed

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. Being aggrieved, 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 the additional 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arises for determination is whether the additional compensation which was deposited in the court and permitted to be withdrawn was taxable at that stage.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 deposited by the Government in appeal to the High Court. In the case of Commissioner of Income Tax, West Bengal-II, Calcutta Vs. Hindustan Housing and Land Development Trust Ltd., , 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.