9911796707
TMI Blog2008 (3) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 - COMMISSIONER OF INCOME-TAX Versus (1) HARDWARI LAL, HUF ( I. T. A. No. 490 of 2007) (2) RANI KAMLA DEVI ( I. T. A. No. 506 of 2007) (3) SMT. ONKARI DEVI ( I. T. A. No. 516 of 2007) (4) PARMA ( I. T. A. No. 536 of 2007) (5) NEW FRIENDS CO-OPERATIVE HOUSE BUILDING SOCIETY ( I. T. A. No. 547 of 2007) (6) PANDIT SHANTI SARUP ( I. T. A. No. 558 of 2007) (7) RAJ KUMAR TEWATIA ( I. T. A. No. 559 of 2007) (8) KARAM SINGH ( I. T. A. No. 568 of 2007) (9) NEPAL SAINI, HUF ( I. T. A. No. 605 of 2007) (10) MAN SINGH, HUF ( I. T. A. No. 612 of 2007) SATISH KUMAR MITTAL and RAKESH KUMAR GARG JJ. I. T. A. Nos. 490, 506, 51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Deputy CIT v. Padam Prakash, HUF [2007] 288 ITR (AT) 1 (Delhi). 4. The Revenue is in appeal before this court challenging the order of the Tribunal. 5. Mr. Yogesh Putney, learned counsel appearing for the Revenue, has argued that in view of Rama Bai v. CIT [1990] 181 ITR 400 (SC), the interest on enhanced compensation for land compulsorily acquired under the Land Acquisition Act, 1894, awarded by the court on a reference under section 8 of the Act or on further appeal has to be taken to have accrued not on the date of the order of the court granting enhanced compensation but on its having accrued year after year from the date of delivery of possession of the land till the date of such order, and such interest cann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be treated as part of the compensation received from the transfer of the land until it was finally determined by the High Court or the hon'ble Supreme Court. In the case of CIT v. Hindustan Housing and Land Development Trust Ltd. [1986] 161 ITR 524 (SC) it has been authoritatively laid down by the hon'ble apex court that the interest on enhanced compensation would not accrue and cannot be subjected to tax until the issue of enhanced compensation is finally settled. This court in the case of Chandi Ram v. CIT [2008] 168 Taxman 315; [2009] 312 ITR 139 ((P H)) has held that the enhanced compensation is to be assessed in the year when the dispute regarding enhanced compensation attains finality. This court has followed the said view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the action of the Assessing Officer in bringing to tax the interest on enhanced compensation on receipt basis as the interest was received by the assessee in the year of appeal and though the interest was paid for delayed payment of enhanced compensation, it could not have been determined earlier on accrual basis on any hypothetical or undetermined amount ?" 8. These appeals were dismissed and it was held that the interest has to be taxed on accrual basis. While dismissing the appeal, this court has followed the decision of the Karnataka High Court in the case of Chief CIT v. Smt. Shantavva [2004] 267 ITR 67. The relevant part of the judgment in Chief CIT v. Smt. Shantavva [2004] 267 ITR 67 is reproduced hereunder (headnote 68): ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1968-69?" 10. While answering the question at issue the hon'ble apex court held that it is concluded by the decision of the apex court in CIT v. T. N. K. Govindarajulu Chetty [1987] 165 ITR 231 and, therefore, the question of accrual of interest will have to be determined in accordance with the above decision of this court and the effect of the decision whether the interest cannot be taken to have accrued on the date of the order of the court granting enhanced compensation but has to be taken as having accrued year after year from the date of delivery of possession of the lands till the date of such order. Thus, in Rama Bai's case [1990] 181 ITR 400 the hon'ble Supreme Court decided the question only to the extent that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , in view of the above discussed judgments of the hon'ble apex court and this court, the interest on enhanced compensation would not accrue till the issue of enhanced compensation is finally decided and thereafter on attaining the finality of determination of enhanced compensation by the court, the interest accrued to the assessee has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the court on the time basis. 13. Consequently, in the light of the said authoritative pronouncement, no fault can be found with the view taken by the Tribunal. Thus, no question of law, much less substantial question of law, survives for our consideration. Accordingly, these appeals are dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
