( 1 ) THE assessee is a private limited company and the relevant assessment year with which we are concerned is the assessment year 1962-63 for which the previous year ended on 31st of March, 1962. It maintained accounts on the mercantile system. About this there has been certain arguments and we shall deal with this argument later on, because the ITO's order appearing at page 30 of the paper book describes the method of accounting as mercantile. The Appellate Tribunal had held, in respect of the compensation money with which we are concerned in this reference, that the assessee was treating the said types of income as receipts from other sources and was following the cash system. Apart from income from house property and business, the assessee had also income from interest and dividend under the head "other sources".

( 2 ) IN the course of the relevant assessment proceedings the ITO noticed that the assessee-company had received a sum of Rs. 91,062 during the previous year from the First Land Acquisition Collector, Calcutta, being the compensation for the occupation of its land at Chowringhee Road. He found that the compensation was related to the period