Judgment

HEGDE, J.:- These are appeals by certificate. A common question of law is involved in these appeals. These appeals relate to a common 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.

2. The question of law arising for the decision is whether the assessee was entitled to claim deduction of compound interest under S. 9 (1) (iv) of the Indian Income-tax Act, 1922. The High Court answered that question in the negative and in favour of the Department. Aggrieved by that decision the assessee has come up in appeal to this court.

3. To decide the question set out above, it will be sufficient if we refer to the facts relating to one of the assessment years i.e. 1956-57. The material facts are as follows :

The assessee is a trustee of a house property at Chandmari Road, Howrah. In respect of that house there was a title suit filed by one Durga Prasad Chamria against Smt. Anardeyi and others claiming title over that property and for other reliefs. A consent decree was passed in that suit on April 19, 1928. Under the terms of that decree the aforementioned hous