Law:

Section:

Section 5 of the income-tax act, 1961-Income-Accrual of-State government acquired assessee's land and took possession on 9-6-1961 and 9-11-1961-In appeal, additional compensation, together with interest thereon, was awarded on 28-10-1968-Assessee received on 9-11-1969 Rs. 1,25,183 as interest which was assessed by ITO in assessment year 1971-72-Pursuant to AAC's decision, ITO assessed Rs. 1,21,554 in supplementary proceedings for assessment year 1970-71-assessee claimed spread over of this interest for entire period (from date of dispossession to that of courts decree) and consequent assessment of only proportionate amount-AAC sustained inclusion of only Rs. 15,558 accruing in that year-tribunal ultimately upheld inclusion of Rs. 1,21,554 in assessment year 1970-71 without spread over-Whether tribunal right in law-held, on facts, yes Facts The State Government acquired, by awarding some compensation, the assessee's land for the purpose of Cochin Shipyard Project and took part possession on 9-6-1961 and balance on 9-11-1961. On appeal, the subordinate judge, by his decree dated 28-10-1968, awarded an additional compensation of Rs. 2,59,750, together with 6 per cent interest thereon, from the date of dispossession till the date of payment. On 9-11-1969, the assessee received the enhanced compensation including Rs. 1,25,183 by way of interest. The ITO, however, assessed the entire interest of Rs. 1,25,183 in the assessment year 1971-72 relating to the accounting period from 17-8-1968 to 16-8-1969. On appeal, the assessee claimed its spread over for the entire period and consequent assessment of only a proportionate amount referable to the relevant accounting year. The AAC, however, held that only a sum of Rs. 3,629, being the interest from 17-8-1969 (date of commencement of the accounting period) to 9-11-1969 (date of payment) was assessable in the assessment year 1971-72 and that the balance of Rs. 1,21,554, representing the interest from 9-6-1961 to 16-8-1969, was assessable in the assessment year 1970-71. The ITO, accordingly, reassessed the said amount of Rs. 1,21,554, in the assessment year 1970-71, after repelling the assessee's contention that the said…

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