This Court also passed a decree declaring that the appellant was entitled to mesne profits against the respondent therein and in companynection therewith the decree of this Court stated as follows AND THIS COURT DOTH ACCORDINGLY DIRECT that the trial companyrt do hold an enquiry about the mesne profits, and such sums as may be found to be due on inquiry against the second and third respondents in respect of the mesne profits be deducted from the amount to be deposited in cash in the Court by the appellant aforesaid in accordance with clause a supra, and do direct the payment of the remaining amount, if any, to the third respondent who is the assignee of the second respondent pendente lite It is number in dispute that the trial companyrt went into the matter and determined the quantum of mesne profits by its order dated 22 12 1962 relevant to the Assessment Year 1963 64.
Briefly stated the facts, as found by the Tribunal, are that the appellant had agreed to purchase a tile factory vide written agreement dated 22 5 1950.
The High Court, by its judgment under appeal, came to the companyclusion that the mesne profits were rightly taxed in the Assessment Year 1963 64 and the same companyld number be taxed in the Assessment Year 1964 65.
This suit was ultimately decreed in appeal by this Court vide its judgment dated 22 4 1958.
It is companytended by Shri Balakrishnan that the right to receive the mesne profits accrued to the appellant on 22 4 1958 when this Court decreed the suit of the appellant and held that he was entitled to receive the mesne profits.
In terms of this decree the appellant was required to deposit Rs 85,000 within 30 days of the decree and thereupon the title in the property was to be companyveyed to the appellant.
On further appeal the Tribunal came to the companyclusion that this sum was taxable only in the Assessment Year 1963 64.
The Income Tax Officer assessed this sum of Rs 57,093 in the appellants Assessment Year 1963 64.
Thereupon, at the instance of the assessee, the Tribunal referred the following two questions of law to the High Court of Madras Whether the mesne profits decreed by the Supreme Court accrued to the assessee earlier to the accounting year relevant to Assessment Year 1963 64?
The question which arises for companysideration in this appeal is as to in which assessment year is the appellant liable to be assessed in respect of mesne profits which were awarded in bis favour.
The amount of mesne profits which was determined at Rs 57,093 was received by the appellant in the following accounting year relevant to the Assessment Year 1964 65.
On appeal, the Assistant Commissioner, however, deleted this amount as in his opinion the same companyld be taxed only in the year 1964 65.
Whether on the facts and in the circumstances of the case, the mesne profits received by the assessee is liable to be taxed in the Assessment Year 1964 65?
When the vendor did number companyvey the property, as promised, the appellant filed a suit for specific performance.
The aforesaid questions were answered accordingly.
