9911796707
TMI Blog2001 (9) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) Whether the learned Tribunal was right in law in holding that the amount of interest is not to be spread over the year of payment to the date of actual refund of estate duty but is liable to be taxed in the assessment year 1982-83 because the refund voucher was received by the assessee on April 20, 1981?" - - - - - Dated:- 27-9-2001 - Judge(s) : N. N. MATHUR., O. P. BISHNOI. JUDGMENT The judgment of the court was delivered by N. N. MATHUR J.- Heard Mr. Rajendra Mehta, learned counsel for the applicant-assessee, and Mr. L. M. Lodha, learned counsel for the Revenue. This is an application under section 256(2) of the Income-tax Act, 1961, arising out of the order of the Income-tax Tribunal, Jaipur Bench, Jaipur rejecting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were placed on records, which prove that interest, salary, etc., were adjusted at the end of the accounting year though not received or paid? (6) Whether the learned Tribunal had material for the finding that the system of account was cash and not mercantile? (7) Whether the learned Tribunal was right in ignoring the material evidence placed before it in the paper book and pointed attention was drawn during hearing? (8) Whether the order of the Tribunal is not perverse on account of ignoring the material evidence placed in the paper book and referred to, relied upon in the course of hearing? (9) Whether the finding of the Tribunal that system of accounting of the assessee during the assessment years 1981-82 and 1982-83 was cash is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated November 30, 1971, wherein this court held that it is only 1/3rd share of the properties belonging to the Hindu undivided family of the deceased as "karta" and coparcener could pass on the death of the deceased and not the whole property. The assessing authority made a reassessment as per the directions of the judgment of the High Court and directed a refund of a sum of Rs. 4,66,184 by the order dated February 28, 1973. The petitioner-assessee claimed interest under section 64(7) of the Estate Duty Act on the amount of refund. This application was rejected by the Controller of Estate Duty. The petitioner approached the High Court in second round. The High Court by' its judgment dated July 20, 1979, directed the Controller of Estate D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation was rejected by the order of the Tribunal dated February 28, 1991. It is contended by Mr. Rajendra Mehta learned counsel for the petitioner-assessee, that the issue of spreading over of the interest over the year of actual payment to the year of actual receipt instead of being charged as an accumulated sum in the year in which the interest has been received, is a question of law and not a question of fact. In this context learned counsel has placed reliance on a decision of the apex court in Rama Bai v. CIT [1990] 181 ITR 400, wherein the court dealing with the case of compensation for land acquisition held that interest on enhanced amount of compensation awarded by the court on a reference under section 18 of the Land Acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawn from those facts. Having given anxious consideration to the contentions raised by learned counsel for the parties, we are of the view that the order of the Tribunal rejecting the application under section 256(1) is erroneous. Accordingly, the application under section 256(2) of the Income-tax Act filed by the petitioner-assessee is allowed and we direct the Tribunal to state the case and refer the following questions of law arising out of the Tribunal's order for the opinion of this court: "(1) Whether the learned Tribunal was right in law in holding that the amount of interest on estate duty refund of the late Shri Budhmal Dugar is not a capital receipt but is a revenue receipt liable to income-tax for the assessment year 1982- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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