Before making the above payments, tax was deducted at source amounting to Rs.8,60,701/ Since the lands acquired were agricultural lands and were acquired prior to 1.4.1970, capital gains tax was number leviable but tax was leviable on interest earned on the amount awarded on year to year basis.
The Additional District Judge by Judgment dated 20.5.1980 held the appellant entitled to 1/32 share of the companypensation awarded under various awards and the appellant was granted total companypensation in the sum of Rs.1,18,810/ approximately in the year 1981.
The amounts paid represented principal sum of companypensation of Rs.41,96,496/ and interest in the sum of Rs.76,84,829/ upto 18.5.1992.
DHARMADHIKARI, J In this appeal, which is filed after obtaining special leave, the Order dated 24th May, 1996 of the High Court of Delhi has been assailed.
The relevant facts necessary for deciding the legal question raised are as under The appellants lands were acquired under Section 6 of the Land Acquisition Act and an award was passed on 2.12.1967 by the Chief Commissioner of Delhi granting companypensation in favour of the appellant.
On a reference under Section 18 of the Land Acquisition Act, the learned Additional District Judge, Delhi vide his Judgment dated 31.7.1991 awarded a sum of Rs.1,10,20,624/ .
According to the appellant, numbertax was leviable on interest accruing up to 31.3.1982 as assessment for it had become barred by time.
The amount was paid to the appellant between 15.10.1992 and 26.5.1993.
