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Documents citing E.D. Sassoon & Co. Ltd. vs Commissioner Of Income-Tax, Bombay ... on 15 October, 1967

The Commissioner Of Income-Tax vs Memo Devi on 13 May, 1977

(36) The second point for consideration is as to whether the compensation amount received by the three persons could be said to be income that accrued or arose to the assessed consisting of the five persons. The test is whether a debt had been created in favor of the assessed. A debt is created when a right to receive is created (vide E. D. Sassoon & Co. Ltd. v. I. T. C. Bombay, 1954 Supreme Court 470, 482 S.C.(I). In the present case, no doubt, at the time of the acquisition, the five persons had interest in the land by virtue of the arrangement between them. But, so far as the Government was concerned, the land was acquired as belonging to only the three persons whose names were entered in the revenue records. The compensation amount was payable by the Government to and it was common ground before us that it was in fact paid in January and March, 1952, only to the three persons. Only the three persons had the right to receive the compensation amount from the Government. The five persons together had no right to claim or receive the compensation amount from the Government. Therefore, a debt could be said to have been created and the compensation amount could be said to have accrued only to the said three persons. It has to be remembered that we have held earlier that the association of five persons ceased to subsist on acquisition in 1948. It has also to be borne in mind that the three persons denied the right of Harishhandra to a share in the suit filed by Smt. Memo Devi. Thus, at no time did the compensation amount accrue to the assessed consisting of the five persons.
Delhi High Court Cites 23 - Cited by 2 - Full Document
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