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TMI Blog2009 (10) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1994-95 and so much so, interest under section 244(1A) in this case accrued to the assessee and was also paid to the assessee in the previous year relevant for the assessment year 1994-95 - uphold the order of the Tribunal and dismiss the appeal - 1701/09 - - - Dated:- 28-10-2009 - RAMACHANDRAN NAIR C. N. and MOHANAN V. K. JJ. Judgment: C. N. Ramachandran Nair J.- The question raised in the appeal filed by the assessee is whether the Income-tax Appellate Tribunal was justified in holding that interest received by the assessee on refund relating to pre-vious year is assessable to tax in the assessment year in which such interest is granted to the assessee along with the refund. 2. We have heard Sri P. Balakrishnan, lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has relied on the decision of the Supreme Court reported in Rama Bai v. CIT [1990] 181 ITR 400 and contended that interest income, whatever be the nature of interest, is assessable on an year to year basis from the date of accrual till the date of receipt. The standing counsel, on the other hand, submitted that the decision of the Supreme Court is with regard to the interest received under the Land Acquisition Act and the same does not apply to interest received on a refund under the Act. Counsel for the appellant submitted that the decision of the Supreme Court in Rama Bai [1990] 181 ITR 400 came subsequent to the decision of the Supreme Court which was followed by the Orissa High Court in decid-ing the matter against the assessee. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found to be eligible for refund of excess tax on revision of assessment based on orders in appeal. Section 145(1) of the Act provides as follows : "145. Method of accounting.-(1) Income chargeable under the head `Profits and gains of business or profession' or `Income from other sources' shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee." 6. From the above, it is clear that income under the two heads, i.e., "Income from business or profession" and "Income from other sources", shall subject to accounting standards, if any, prescribed by the Government in terms of sub7f section (2), be assessed in the assessment year re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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