C I T vs. NATHI RAM DAGAR

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ITA/77/2008HC Punjab & HaryanaPHHC01080794200824 April 2008Author: MR. JUSTICE SATISH KUMAR MITTAL,MR JUSTICE RAKESH KUMAR GARG2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law survived for its consideration. This was because the Court had already dismissed similar appeals filed by the Revenue on the same question of law on March 26, 2008, in ITA No.490 of 2007 and other connected matters. Consequently, the present appeal was found to be without merit and was dismissed. The specific reasoning of the ITAT regarding the assessment of interest until the matter was finally settled by the High Court was not elaborated upon by the High Court, as the appeal was disposed of based on its prior decisions.

What were the facts?

The Revenue, Commissioner of Income Tax-Faridabad, filed an appeal under Section 260A of the Income-tax Act, 1961, against an order dated January 31, 2007, passed by the Income-Tax Appellate Tribunal (ITAT), Delhi Bench 'H', New Delhi. The appeal pertained to assessment year 1999-2000 and concerned the assessee, Sh. Nathi Ram Dagar, HUF. The Revenue sought to challenge the ITAT's decision regarding the assessment of interest. The High Court noted that similar appeals filed by the Revenue on the same question of law had already been dismissed by it on March 26, 2008.

What were the issues?

1. Whether on the facts and circumstances of the case, the Hon'ble ITAT is right in holding that assessment of interest cannot be made until the matter is finally settled by the High Court, in contradiction with the judgment of the Hon'ble jurisdictional High Court of Punjab & Haryana following the judgment of the Apex Court in the case of CIT v. Rama Bai (181 ITR 400) whereby interest on enhanced compensation is to be taxed on accrual basis irrespective of the pendency of appeal in higher courts in respect of enhanced compensation? (Question of law turning on Section 260A of the Income-tax Act, 1961). Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue contended that interest on enhanced compensation should be taxed on an accrual basis, irrespective of pending appeals, citing the Supreme Court judgment in CIT v. Rama Bai (181 ITR 400) and subsequent judgments of the jurisdictional High Court of Punjab & Haryana in ITA No.176 of 2005 and ITA No.177 of 2005.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CM No.2214-CII of 2008 and Date of decision: 24.4.2008 The Commissioner of Income Tax-Faridabad ......Appellant Versus Sh. Nathi Ram Dagar, HUF, s/o Sh.Hoshiar Singh, Village Jharsaintly, Distt. Faridabad ......Respondent

CORAM:- HON'BLE MR.JUSTICE RAJIVE BHALLA HON'BLE MR.JUSTICE RAKESH KUMAR GARG * * * Present: Mr. Yogesh Putney, Advocate for the appellant-revenue. * * * Rakesh Kumar Garg, J . CM No.2214-CII of 2008

For the reasons stated in the application, delay of 36 days in refiling the appeal is condoned. CM stands disposed of.

The revenue has filed the present appeal under Section 260A of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) against the order dated 31.1.2007 passed by the Income-Tax Appellate Tribunal, Delhi Bench 'H', New Delhi in ITA No.2564/Del/2003 for the assessment year 1999-2000` raising the following substantial question of law:- “Whether on the facts and circumstances of the case, the Hon'ble ITAT is right in holding that assessment of interest cannot be made until the matter is finally settled

CM No.2214-CII of 2008 and -2- by the High Court, in contradiction with the judgement of Hon'ble juri ictional High Court of Punjab & Haryana following the judgement of Apex Court in the case of CIT v. Rama Bai (181 ITR 400) whereby interest on enhanced compensation is to be taxed on accrual basis irrespective of the pendency of appeal in higher courts in respect of enhanced compensation. [ITA No.176 of 2005 and ITA No.177 of 2005 in the cases of CIT, Faridabad v. Naresh Kumar and CIT, Faridabad v. Dilbagh Singh, respectively]?”

The appeals of the revenue raising the similar question of law as raised in this appeal have already been dismissed by this Court vide judgement dated 26.3.2008 passed in ITA No.490 of 2007 and other connected matters.

In the light of the above fact, no substantial question of law survives for our consideration in this appeal and accordingly, we decline to entertain the present appeal. Hence, this appeal is without any merit and the same is dismissed.

(RAKESH KUMAR GARG) JUDGE April 24, 2008

(RAJIVE BHALLA) ps

JUDGE

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