Commissioner of Income Tax vs Nav Bharat Nirman P. Ltd.

Kirpal, J.—Heard. The question sought to be referred are as follows :

"1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the amount of compensation received by the assessed was not taxable in its hands ?

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessed could enter into an agreement with Delhi School Teachers Co-operative House Building Society in respect of the land which had been acquired by ''the State Government'' ?"

In our opinion, even though the question as framed may be regarded as mixed questions of fact and law, the answer to the same is self-evident. The assessed was the owner of leasehold rights which were acquired and an award dated March 31, 1965, was promulgated. On November 15, 1966, the assessed sold the leasehold rights to a co-operative society who were the owners of the land. During this time, prior to November 15, 1966, an appeal for enhancement of compensation had been filed by the assessed. In the agreement on November 15, 1966, it was provided that the assessed was relinquishing its rights in the said appeal which had been filed. It was also stated that the appeal would be withdrawn but it seems that the appeal was not withdrawn but the finding of fact is that the amount which was realised on compensation having been enhanced was credited by the assessed to the account of the said society. In other words, the money which was received as a result of enhancement of compensation went to the coffers of the society and was not retained by the assessed. This means that the said agreement was given effect to. It is a question of fact whether the said agreement was given effect to and this being so, the answer to the question is self-evident. The petition is, Therefore, dismissed. No order as to costs.

Petition dismissed.