9911796707
TMI Blog1994 (3) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... been acquired by a notification dt. 7th Jan., 1971 published in the Punjab Gazette on 22nd Jan., 1971. Assessment was made under s. 144 of the IT Act, 1961, but was cancelled under s. 146. Notice under s. 143(2) was served on the legal heirs of late Sh Gurbachan Singh. It was noticed by the Assessing Officer that the assessee had received interest amounting to Rs. 1,29,833 in pursuance of the order of the High Court dt. 18th Sept., 1979 on enhanced compensation of agricultural land. Earlier, the assessee had received additional compensation of Rs. 1,59,000 and interest amounting Rs. 39,862 in pursuance of the order of the District Judge dt. 31st Oct.,1975. The Assessing Officer treated the whole amount of interest allowed by the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived under s. 28 of the Land Acquisition Act. The Tribunal at that time had held that the entire amount of Rs. 39,862 could not be taxed in the year of receipt but it had to be taxed in the relevant assessment year in which it accrued beginning from 9th March, 1971 and ending on 31st Oct., 1975. The learned counsel has submitted that the same principle shall apply to the amount of interest allowed by the High Court dt. 18th Sept., 1979 on enhanced compensation. Our attention has been drawn to a decision of the Hon'ble Supreme Court in the case of Rama Bai vs. CIT (1990) 89 CTR (SC) 164 : (1990) 181 ITR 400 (SC), which is directly on the point of accrual of interest. The learned counsel has invited our attention to the assessee's appeal on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not successful, we acceed to the request of the learned counsel that this question of law may not be taken into consideration in as much as he would not press and would rest context if the Revenue's appeal dismissed. We have considered the rival contentions and we find that the first appellate authority while directing the Assessing Officer to treat the amount of Rs. 10,516 as taxable in this year, has taken a correct legal view in the matter in the light of the decision of the Hon'ble Supreme Court in Rama Bai's case. Therefore, keeping in view the judicial pronouncement on the question of law, we find that the Revenue's appeal fails and it is dismissed. 6. Since the learned counsel has not pressed the assessee's appeal on the condi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions, the learned counsel has submitted that it constituted sufficient cause and therefore, there was no occasion to levy penalty. Reliance has been placed on a decision of the Punjab and Haryana High Court in the case of CIT vs. Behari Lal Pyare Lwl (1983) 32 CTR (P H) 279 : (1983) 141 ITR 32 (P H). It was held in that case that an order of penalty could not be passed as a protective measure. It has been argued by the learned counsel that actually the assessee had filed return in the status of individual but the Assessing Officer completed the assessment in the status of HUF. This assessment is said to be invalid and, therefore, the penalty levied on protective assessment is said to be not permissible in law. The assessment is said to hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee appears to have filed several applications seeking extension of time and, therefore, we find that the penalty should not be imposed. It has also been found that the Assessing Officer did not reject any of the applications filed by the assessee. In these circumstances, the assessee's appeal in the matter of penalty imposed under s. 271(1)(a) is allowed and the Revenue's appeal is dismissed. It is held that no penalty is leviable. 10. We shall now take the cross-appeals relating to penalty under s. 273(2)(b). The Assessing Officer imposed this penalty on the ground that the assessee had not submitted estimate of advance- tax. The first appellate authority in this matter has upheld the levy of penalty but directed the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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