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Section 5 of the Income-tax Act, 1961 - Income - Accrual of - Whether interest on enhanced compensation for land compulsorily acquired under the Land Acquisition Act, 1894 cannot be taken to have accrued on the date of the order of the Court granting enhanced compensation but has to be taken as having accrued year after year from the date of delivery of possession of lands till the date of such order - Held, yes FACTS In appeal and on reference under section 257 the question referred to the Supreme Court was regarding the point of time at which the interest payable under sections 28 and 34 of the Land Acquisition Act, 1894 accrues or arises, where such interest is paid on enhanced compensation awarded on reference under section 18 of the said Act or further appeal to the High Court and/or the Supreme Court. HELD In view of the decisions in CIT v. T.N.K. Govindarajulu Chetty [1987] 165 ITR 231 (SC), T.N.K. Govindarajulu Chetty v. CIT [1973] 87 ITR 22 (Mad.)and Mrs. Khorshed Shapoor Chenai v. ACED[1980] 122 ITR 21 (SC) it is clear that the interest on enhanced compensation under the Land Acquisition Act could not be taken to have accrued on the date of the order of the Court granting enhanced compensation but had to be taken as having accrued year after year from the date of delivery of possession of the lands till the date of such order. CASE REVIEW CIT v. Govindarajulu Chetty [1987] 165 ITR 321 (SC) and Khorshed Shapoor Chenai v. Asst. CED[1980] 122 ITR 21 (SC)followed and relied upon. Decision of the Andhra Pradesh High Court in CIT v. Sankari Manickyamma[1976] 105 ITR 172reversed. CASE REFERRED TO CIT v. T.N.K. Govindarajulu Chetty [1987] 165 ITR 231 (SC), T.N.K. Govindarajulu Chetty v. CIT[1973] 87 ITR 22 (Mad.) and Mrs. Khorshed Shapoor Chenai v. ACED [1980] 122 ITR 21 (SC). G.C. Sharma, T.A. Ramachandran, A. Subba Rao, A.D.N. Rao, Pradeep Agarwal, Rajiv Tyagi, Vikram Dholakia and B. Parthasarathi for the Applicant. Dr. V. Gauri Shankar, B.B. Ahuja and Miss A. Subhashini for the Appellant. ORDER 1. Tax Ref. Case No. 3 of 1976,TaxRef.CaseNos. 1 to 3 of 1978, C.A. No. 810 of 1974, Civil Appeal No. 3027 of 1988 - The question involved in these cases is…

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