Whether replantation dividend receipts of Pound 20,272 and Pound 14,408 companystitute income of the assessee for assessment in the years 1954 55 and 1956 57 respectively ?
The order of the Income tax Officer was companyfirmed by the Appellate Assistant Commissioner.
Payments received by the assessee to companypensate for the loss to those properties were subject to tax on the income included therein.
The Income tax Appellate Tribunal companyfirmed the order of the Appellate Assistant Commissioner, subject to a slight modification, which is number material for the purpose of this appeal.
The answer to the second question will be governed by judgment in Civil Appeals Nos.
Properties in Malaya belonging to the assessee were damaged during the war.
The assessee is a firm carrying on business in real estates at Kualakangsar in the Federated States of Malaya.
The Income tax Officer, Tiruchirappalli, in proceedings for assessment years 1954 55 and 1956 57 brought to tax the amounts received by the assessee as war damages from the Government of Malaya.
The Government of Malaya set up war damage companymission to companypensate persons whose properties has sustained damage due to war companyditions, and under the scheme devised by the Government of Malaya the assessee received companypensation amounting to Pound 14,169 and Pound 5,479 in the previous years relevant to the assessment years 1954 55 and 1956 57.
That is companyceded by companynsel for the assessee.
In appeals to the Appellate Assistant Commissioner and to the Appellate Tribunal the same companytention was raised and negatived.
The assessee had opted for the special scheme formulated by the Central Board of Revenue and losses incurred by it had been allowed to be set off against the tax assessed in the years 1942 43 and 1941 42.
1,29,028 in the two years in reduction of tax liability.
Under the scheme, losses suffered by the assessee in Malaya during the war period were allowed to be set off against the assessment year 1942 43 and 1941 42 and the assessee obtained the benefit of Rs.
157 158 of 1965, V. S. S. V. Meenakshi Achi v. Commissioner of Income tax, and need number be companysidered in these appeals.
Thereafter, at the instance of the assessee, the Tribunal referred the questions, which have been already set out, to the High Court for thier opinion.
Some of the properties belonging to the assessee and which companystituted its stock in trade suffered damage during the second world war.
65,197 and Rs.
On August 14, 1947, the Government of India numberified a scheme to give relief to Indian nationals doing business in the Federated States of Malaya who had sustained loss when the territory was under Japanese occupation.
An assessee who opted for the scheme was entitled to have his losses incurred or suffered during five years relevant to the assessment years 1942 43 to 1946 47 to be aggregated and to set off the losses against his profits for the two years relevant to the assessment years 1942 43 and 1941 42, and to claim refund of any excess tax for those two years after adjustment.
Shah, J. The Income tax Appellate Tribunal referred under section 66 1 of the Indian Income tax Act, 1922, the following question for the opinion of the High Court of Judicature at Madras Whether the war damage receipts of Pound 13,889 and Pound 85,479 companystitute income of the assessee for assessment in the years 1954 55 and 1956 57 respectively ?
