Tek Chand, J.

1. This is an income-tax reference at the instance of the Commissioner of Income-tax arising out of the order of the Tribunal in I. T. A. No. 5276 of 1957-58, and the following question of law has been referred to this Court under Section 66 (1) of the Indian Income-tax Act -

"Whether on a true interpretation of Section 34 of the Land Acquisition Act and the Award given by the Collector of Pepsu on the 30th September, 1955 the sum, of Rs. 48,660/- was capital receipt not liable to tax under the Indian Income Tax Act?

2. The question of law reproduced above has been referred to this Court in view of the under noted facts and circumstances.

3. The assessee is a Hindu undivided family represented by Dr. Sham Lal Narula. Apart from other sources, the assessee owned land measuring 40 bighas 11 biswas in the erstwhile Patiala State. This land was acquired by the Patiala Government under Patiala Act 3 of 1995 Bk. On 15th October, 1951, possession of the land was taken over by the Government though by that date the amount of compensation to which the assesses was entitled had not been determined. An award was given by the Collector of Pepsu on 30th September 1955, and