JUDGMENT
A. Lakshmana Rao, J.
1. The petitioner is not present, nor is he represented by any counsel. Heard learned standing counsel for the Income-tax Department appearing for the respondent.
2. The assessee is an individual deriving agricultural income as a protected tenant. The State Government acquired the lands which were in his possession as a protected tenant and an award was passed on March 26, 1973. On a reference made to the City Civil Court, Hyderabad, the compensation was enhanced and interest was directed to be paid from the date of acquisition till the payment of compensation. On further appeal by the State Government, this court reduced the quantum of compensation, but confirmed the direction relating to payment of interest. The Income-tax Officer made the assessment on the entire interest relying on the decision of this court in CIT v. Smt. Sankari Manickyamma . On appeal, the Commissioner of Income-tax (Appeals) confirmed the decision of the assessing authority. Aggrieved by that order, the assessee preferred a further appeal before the Income-tax Appellate Tribunal. The Tribunal confirmed the order of the Commissioner of Income-tax. At the instance of the assessee, the following question was referred for decision of this court, under section 256(1) of the Income-tax Act, 1961 :
“Whether, on the facts and circumstances of the case, the entire interest payable by the State Government for the period May 6, 1961, to March 31, 1976, or only the interest relating to the year 1975-76 was assessable as the income of the assessee for the assessment year 1976-77 ?”
3. Against the decision of this court in CIT v. Smt. Sankari Manickyamma , the assessee had filed an appeal before the Supreme Court. In that appeal, the decision of this court was reversed (See Sankari Manickyamma v. CIT ) holding that the interest on enhanced compensation awarded by the court on a reference under section 18 of the Land Acquisition Act or on further appeal in respect of the land acquired has to be taken to have accrued not on the date of the order of the court granting enhanced compensation but as having accrued year after year from the date of delivery of possession of the land till the date of such order, and such interest cannot be assessed to income-tax in one lump sum in the year in which the order is passed.
4. In view of the decision of the Supreme Court, we hold that only the interest relating to the year 1975-76 is assessable as the income of the assessee for the assessment year 1976-77 and the entire interest payable to the owner of the land for the period May 6, 1961 to March 31, 1976, is not assessable in one lump sum.
5. The question is answered, accordingly, in favour of the assessee and against the Revenue. The case referred is, accordingly, disposed of. No order as to costs.