9911796707
TMI Blog2015 (12) TMI 692X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be taxed till finality is achieved in this case. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ttle variation. The amount of compensation remains to be ₹ 30 crore approximately. This amount is apart from the statutory interest payable under the Act. The appellants have already deposited ₹ 6 crore which have been withdrawn by the respondents. Operation of the impugned order is stayed subject to the deposit of another sum of Rs. Crore by the appellants within 6 weeks, failing which the stay shall be stand vacated automatically. Respondents would be at liberty to withdraw the amount on furnishing security to the satisfaction of the Registrar General of the hg of Gauhati at Gawahati." From the above the AO is found that the stay order was granted on dated 21.4.2005 by the Apex Court subject to the deposit of another s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of payment of ₹ 6,00,00,000/- received by the assessee and the interest element, which was directed to be paid by the Hon'ble High Court from 30.11.1996 on the compensation amount, had already been stayed by the Hon'ble Supreme Court and accordingly the said order could not be said that the interest had accrued to the assessee. The appellant has therefore submitted that the AO following the rule of consistency in view of the order of the ITAT should not have made the said addition of ₹ 3,64,64,577/-. I have considered the relevant facts and the material on record. I find merit and substance in the contentions as raised by the appellant. It is clear that the order of the Hon'ble High Court had been stayed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustainable in law; and so, the same is directed to be deleted. Ground no. 2 is allowed." Aggrieved, Revenue preferred appeal before us of the following ground:- (i) That the Ld. CIT(A) has erred in law as well as in facts and circumstances of the case in deleting the addition of ₹ 3,64,64,577/- made on account of accrued interest receivable by the assessee on unpaid compensation. Shri Ravi Tulsiyan Ld. Authorized Representative appearing on behalf of assessee and Md. Ghayas Uddin, Ld. Authorized Representative appearing on behalf of Revenue. 4. We have heard rival contentions of both the parties and perused the materials available on record. Ld. DR relied on the order of AO and submitted that subject matter of the dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as part payment out of the total compensation and the balance was still to be received subject to the decision of the Apex Court. So it is quite clear that the interest income is also a subject matter of the final order of the court. Hence interest cannot be taxed till finality is achieved in this case. However, the dispute has reached to its finality on dated 29-11-2012 and for this the relevant assessment year is 2013-14 for the charging the interest income to tax. Here, we are adjudicating the issue of charging the interest income, pertaining to the assessment year 2009-10 when the dispute of charging the interest income was a subject matter of litigation. So the entire amount of interest income which has been accrued till the date of f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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