Judgment

GROVER, J. : These appeals by special leave from a common judgment of the Madhya Pradesh High Court arise out of reference made by the Income tax Appellate Tribunal relating to the assessment years 1956-57, 1957-58, 1958-59 and 1961-62.

2. The appellant who is the assessee was a jagirdar of the erstwhile Gwalior State. By the Madhya Bharat Abolition of Jagir Act, 1951, hereinafter called the "Act", the jagirs were abolished with effect from December 4, 1952. Under section 8 of the Act compensation was payable to him in accordance with the principles laid down in Schedule I. Under sub-s. (2) of that section the compensation payable became due as from the date of the resumption of the jagir. Simple interest was payable at the rate of 21/2 per cent per annum from that date upto the date of payment on the amount of compensation which was payable within a period of ten years in annual instalments. The assessee maintained that the amount of interest formed part of the compensation and constituted a capital receipt. The Income-tax Officer held against the assessee and included the interest in his income. The appellate Assistant Commissioner took the same view. The appellate tribuna