2011 (1) TMI 909

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..... ch she was liable to be taxed in the year of receipt, particularly after amendment to Section 45(5) as held by the Hon’ble Supreme Court in Ghanshyam’s case - Liability of interest is mandatory in view of law laid down by the Hon’ble Supreme Court in M.H.Ghaswala’s case (2009 -TMI - 34152 - SUPREME COURT) - Hence, the questions of law raised by the revenue have to be answered in its favour
MR J .....

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..... ry as a result of Direct Tax Laws (Amendment Act) 1989? ii) Whether on the facts and in the circumstances of the case, the appeal was competent before the CIT(A)/ITAT in view of amendment brought about w.e.f 1.4.1989 in the scheme of charging of interest under section 234A and 234B of the Income Tax Act, 1961? 2. Land of the assessee was acquired under Land Acquisition Act, 1894 and compensati .....

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..... e provided the assessee who is required to file his return of income has failed to do so before the due date prescribed under section 139(1) of the Act. Similarly interest under section 234B is chargeable provided the assessee fails to pay advance tax as required under section 208 of the Act. However, the fact in the present case revealed that prior to settlement of dispute, the assessee had not e .....

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..... ve visualized in financial year 1991-92 that the dispute will be resolved and any additional compensation will be received which is liable for taxation. In the circumstances, there was no current income within the meaning of Section 208 on which the assessee can pay advance tax. Accordingly, interest under section 234B is not chargeable. We, therefore, uphold the order of the learned CIT(A)." 3. .....

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..... xed in the year of receipt, particularly after amendment to Section 45(5) as held by the Hon'ble Supreme Court in Ghanshyam's case (supra). Liability of interest is mandatory in view of law laid down by the Hon'ble Supreme Court in M.H.Ghaswala's case (supra). 6. In view of above, questions of law raised by the revenue have to be answered in its favour. We order accordingly. 7. The appeal is a .....

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