2009 (2) TMI 67 - HC - Income Tax

Petitioner and other co-owners became entitled to compensation along with interest on land acquisition whether such interest received with compensation is liable to be apportioned amongst various co-owners or liable to be taxed in only petitioner hands matter is restored to file of AO to ascertain whether the petitioner is co-owner of the land as claimed by the petitioner after appreciation of evidence produced by petitioner interest liability u/s234A & 234B will be settled accordingly

Summary

The High Court of Gujarat delivered a judgment in 2009 regarding a petition for waiver of interest charged under Sections 234A and 234B of the Income Tax Act. The petitioner, an illiterate agriculturist, sought relief after being assessed for returns filed in response to a notice under Section 148 of the Act. The respondent rejected the waiver application, stating that the conditions for interest waiver were not met. The petitioner argued that he was only one of the co-owners of the land acquired and should only be liable for a share of the interest. The court found that while the returns were not voluntary, the interest portion could be allocated among co-owners. The matter was remitted to the Assessing Officer to determine the petitioner's co-ownership status and apportion the interest accordingly. The petition was allowed to this extent, with no order as to costs. The judgment was delivered by Justice D. A. Mehta and S. R. Brahmbhatt, JJ. The petitioner was represented by Mr. Manish J. Shah.