A.R. Somnath Iyer.--The question referred to us under section 256(1) of the Income Tax Act, 1961, by the Income Tax Appellate Tribunal, at the instance of the Commissioner of Income Tax, is :

"Whether, on the facts and in the circumstance of the case, the Appellate Tribunal was right in law in holding that the entire interest amount of Rs. 87,265 was not assessable in the assessment year 1962-63 and that only the proportionate interest referable to the assessment year 1962-63 was assessable in that year ?"

2. This is how the question arises :

By a notification made on January 13, 1948, under section 4 of the Land Acquisition Act, a land owned by the assesses measuring 20,000 square yards was proposed to be acquired, and on February 19, 1949, possession was taken. The Land Acquisition Officer of the Corporation of the City of Bangalore made an award on June 2, 1949, by which he determined the compensation payable to the assesses to be a sum calculated at Rs. 2 a square yard. He also gave him the usual statutory allowance. This sum of money aggregating to Rs. 46,000 was paid to the assesses only on December 31, 1949. But there was a reference to the District Judge under secti