9911796707
TMI Blog2005 (5) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... re quashed - - - - - Dated:- 11-5-2005 - Judge(s) : N. K. SUD. JUDGMENT N.K. Sud J.-This order will dispose of 13 writ petitions, viz., C.W.P. Nos. 4000 to 4012 of 1984, involving common question of law arising out of identical facts. Challenge in these writ petitions is to the notices issued under section 148 of the Income-tax Act, 1961, dated March 27, 1984, by which proceedings for reassessment have been initiated for the assessment years 1967-68 to 1979-80. The assessee's land measuring 787 kanals 12 marlas and 1 kanal 12 marlas in the Revenue Estate of Village Balahgarh, District Gurgaon, was acquired by the State and possession thereof taken on October 21, 1966. The Land Acquisition Collector gave the award on October 21, 1966. The petitioner applied for a reference under section 18 of the Land Acquisition Act and, ultimately, the matter came up to the High Court which, vide order dated June 1, 1977, enhanced the compensation. Letters Patent Appeal filed by the State was also dismissed vide order dated March 20, 1979. As a consequence thereof, the assessee was paid enhanced compensation amounting to Rs. 14,64,006. A further sum of Rs. 10,30,320 was paid to him as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals) by his order dated January 16, 1984, partly accepted the claim of the assessee. He held that the interest received by the assessee was not in the nature of damages or agricultural income but was interest liable to be included in his taxable income. He, however, accepted the claim of the assessee that such interest was assessable only on accrual basis and, therefore, only interest pertaining to the accounting period relevant to the assessment year 1980-81 could be added to the total income of the assessee. He directed the Assessing Officer to recompute the addition accordingly. The Commissioner of Income-tax (Appeals) also directed that even out of the amount of Rs. 6,07,534 received by the assessee on account of interest from April 9,1973, to March 1, 1983, in the accounting period relevant to the assessment year 1983-84, interest pertaining to the accounting period relevant to the assessment year 1980-81, estimated by the Assessing Officer at Rs. 1 lakh would also be assessable in the hands of the assessee in the assessment year 1980-81. While giving effect to the order of the Commissioner of Income-tax (Appeals) dated January 16, 1984, for the assessment year 1980-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9] 237 ITR 339. In that case, the Assessing Officer had brought to tax capital gains arising on the compensation received by the assessee in the assessment year 1978-79. On appeal, the Commissioner of Income-tax (Appeals) annulled the assessment on the ground that the same was assessable in the year in which possession of the land was taken by the State Government, i.e., November 5, 1976, and not in the assessment year 1978-79. The Revenue's appeal before the Tribunal on this ground also failed. The Tribunal observed that since the possession had been taken over on November 5, 1976, the capital gains was assessable in the assessment year 1977-78 and not in the assessment year 1978-79. On the basis of the observations recorded by the appellate authority, the Assessing Officer issued notice under section 148 of the Act for the assessment year 1977-78 on March 1,1996, which was challenged by the assessee. This court at page 345 of the report held as under: "The order of the Tribunal dated December 14, 1995, did not permit the assessment of the amount of compensation and interest in the assessment year 1978-79 on the ground that the income was assessable in the assessment year 1977-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of subsection (1) of that section shall not apply where, by virtue of any other provision limiting the time within which action for assessment or reassessment may be initiated, issuance of notice for such assessment or reassessment is barred on the date of the order, which is the subject-matter of appeal, reference or revision, in which the finding or direction is contained. It would, thus, mean that an appellate or revisional authority cannot give a direction for assessment or reassessment which goes to the extent of conferring jurisdiction upon the Assessing Officer if his jurisdiction had ceased due to the bar of limitation. If the issuing of a notice for assessment or reassessment for a particular assessment year had become time-barred at the time of the order, which was the subject-matter of the appeal, the provisions of section 150(1) cannot be invoked to the aid of the Revenue for making an assessment or reassessment." In the present case, a finding has been recorded by the Commissioner of Income-tax (Appeals) in his order dated January 16, 1984, that the entire interest received by the assessee during the accounting period relevant to the assessment year 1980-81, was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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