8,61,000/ to the plaintiff therein.
Appeals by certificates from the judgment and order dated January 28, 1969 and June 13, 1969 of the Calcutta High Court in Income tax Ref.
Anardeyi Sethani but she was to make a payment of Rs.
month.
38,221/ for the assessment year 1956 57, relyinging the clause in the arrangement providing for payment of companypound interest.
The interest on this amount 6 3/4 for a year worked out to Rs.
38,221/ ?
It was further provided therein that, s. 4,25,000/ was to be paid on the execution of the terms of settlement and thereafter monthly instalments of Rs.
Under the terms of that decree the aforementioned house property was held to belong to Smt.
The question of law arising for decision is whether the assessee was entitled to claim deduction of companypound interest under section 9 1 iv of the Indian Income tax Act, 1922.
The terms of the companypromise were number adhered to inasmuch as there were defaults in payment of interest.
61 with yearly rests.
A companysent decree was passed in that suit on April 19, 1928.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
Thereafter, at the instance of the assessee the following, question of law was referred to the, High Court, in respect of the assessment year 1956 57 Whether, on ,the facts and in the circumstances of the case, and on a true companystruction of the words interest payable on such capital in section 9 1 iv of the Indian Income tax Act, 1922, the amount of interest allowable was Rs.
After making the payment on February 19, 1945, there still remained outstanding Rs.
Ramamurthi, R. N. Sachthey and B. D. Sharma, for the respondent.
202 of 1963 and 76 of 1968, respectively.
C. Chagla and D. N. Mukherjee, for the appellant.
These appeals relate to a companymon assessee but arise from three different assessments in respect of three different assessment years 1956 57 to 1958 59 , the accounting years being the respective calendar years.
There was stipulation for the payment of companypound interest on the unpaid amount.
The material facts are as follows The assessee is a trustee of a house property at Chandmari Road, Howrah.
Aggrieved by that decision the assessee has companye up in appeal to this Court.
18,000/ only, on the basis of simple interest at the rate of 6 3/4 per annum.
18,000/ .
The Income tax Officer gave a deduction of Rs.
35,000/for seventeen months and the balance in the 18th.
1500 to 1502 of 1970.
Anardeyi and others claiming title over that property and for other reliefs.
In respect of that house there was a title suit filed by one Durga Prasad Chamria against Smt.
The Judgment of the Court was delivered by HEGDE, J. These are appeals by certificate A companymon question of law is involved in these appeals.
2,70,535/ .
The assessees appeal against this order was dismissed by the Appellate Assistant Commissioner and later on by the Tribunal.
18,000/ or Rs.
The questions referred to for the remaining assessment years are more or less similar.
The assessee, however, calculated the total interest payable at Rs.
