( 1 ) AN identical question is referred in both these referred cases.

( 2 ) THE assessee is Sri J. D. Italia, who owned a certain extent of lane in Lakshmipur Village in Warangal District. The land was said to have been unauthorisedly occupied by Azam Jahi Mills Ltd. The assessee filed a suit, O. S. No. 1 of 1956, on the file of the learned District Judge, Warangal, for recovery of possession of the said lane, which was ultimately decreed on 22/01/1963. The Azam Jahi Mills Ltd. , filed an appeal in this court, being A. S. No. 167 of 1963. In this appeal, a compromise was entered into between the parties which was recorded by this court on 8/07/1968, in CMP No. 9839/68. According to this compromise, the Azam Jahi Mills agreed to pay a total sum of Rs. 1,45,5000 to the legal representatives of the plaintiff (plaintiff died pending the proceedings) comprised of the following items : @@rs. (a) For land under suit 80,000 (b) Legal expenses 5,000 (c) Interest upto 13-7-64 24,000 (d) Interest from 13 7 64 to hereof 16,000 (e) For balance land (approximately 20,000 1 acre 30 gts) --------- 1,45,000 ---------@@ For the assessment year 1969-70, the assessing authority held t