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Section 4 of the Income-tax Act, 1961 - Income - Chargeable as - Assessment year 1966-67 - In September 1964, assessee was awarded additional amount of compensation and interest on enhanced compensation on acquisition of his property - Whether since relevant previous year was calendar year 1965, amount of proportionate interest for period from 1-10-1964 to 31-12-1964 could not be included in income of assessee for assessment year in question - Held, yes FACTS Certain property was acquired in which the assessee had an interest. Not satisfied with compensation awarded by the Land Acquisition Officer, the matter was carried to the civil court. The civil court made an award on 30-9-1964. The civil court enhanced the compensation and awarded interest on such enhanced compensation. There was a partition on 27-9-1964, with respect to this additional compensation, which appeared to have been actually received some time towards the end of year 1965. The Department sought to include the proportionate interest for the period 1-10-1964 to 31-12-1964 in the income of the assessee for the assessment year in question. On reference: HELD The proportionate interest for the period 1-10-1964 to 31-12-1964 could not be included in the income of the assessee for the simple reason that the previous year relevant to the assessment year in question was the calendar year 1965, i.e., commencing from 1-1-1965 and ending with 31-12-1965. Note : The case has been decided in favour of the assessee. JUDGMENT B.P. Jeevan Reddy, CJ.-Under section 256(2) of the Income-tax Act, 1961, the Tribunal has stated the following questions: "Whether, in view of the fact that the applicant's accounting year was from January, 1965, to December, 1965, there was any justification for the addition of the proportionate interest for the period from October 1, 1964, to December 31, 1964, in the income of…

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