Jhansi Electric Supply Co. Limited vs Commissioner of Income Tax

Having heard, counsel for the applicant, we are of the opinion that the following two questions are questions of law arising out of the appellate order of the Tribunal:

"1. Whether, on the facts and in the circumstances of the case, the Tribunal has erred in law in holding that the amount on which interest had been calculated not having been ascertained till the award of the arbitrator was given, the income from interest of the assessee on the said compensation amounting to Rs. 2,39,951 accrued to the assessee in toto, as the income of the previous year relevant to the assessment year 1978-79, keeping in view the provisions of the Indian Electricity Act, 1910, read with the award dated December 30, 1976 ?

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in law in holding that the entire interest of Rs. 2,39,951 was liable to be taxed in the assessment year 1978-79, and not as income of the different previous years on the basis of accrual of such income yearwise ?"

Question No. 3 has not been pressed by counsel for the applicant before us.

This application is allowed in part. The Income Tax Appellate Tribunal, Allahabad Bench, Allahabad, is directed to draw up a statement of the case and refer the aforesaid questions of law to this court for its opinion. There shall be no order as to costs.