C I T vs. SH. RAM CHAND AND SUBHASH CHANDER

PDF · subscribers
ITA/498/2008HC Punjab & HaryanaPHHC01080495200807 August 2014Author: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE DR. RAVI RANJAN3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, in view of subsequent decisions in similar matters, including Commissioner of Income Tax v. Shri Prem Singh and others, decided to remand the matter back to the Income Tax Appellate Tribunal. The Tribunal's order dated 14.3.2007 was set aside. The High Court directed the Tribunal to adjudicate the issue afresh in accordance with law after providing an opportunity of hearing to the respondent-assessee. The specific finding on the assessment year for the interest income was not decided by the High Court, but was left for the Tribunal to determine.

What were the facts?

The assessee, Sh. Subhash Chander and Ram Chander, received ₹57,73,476/- as interest along with enhanced compensation and interest for the period 23.3.1993 to 12.3.1998, which was invested in FDRs on 27.3.1999. The assessee had not filed a return of income. A notice under Section 148 was issued, and the Assessing Officer framed an assessment at ₹58,23,480/-. The Commissioner of Income Tax (Appeals) directed the Assessing Officer to assess interest of ₹19,11,001/- in assessment year 2000-01 and granted relief for assessment year 1999-2000 based on a TDS certificate showing payment date as 26.4.1999. The revenue appealed to the Income Tax Appellate Tribunal (ITAT), which dismissed the revenue's appeal. The revenue then filed the present appeal before the High Court.

What were the issues?

1. Whether the interest income of ₹19,11,001/- on enhanced compensation should be assessed in assessment year 1999-2000 or 2000-01, turning on the date of accrual or receipt of such interest, and the interpretation of Section 5 of the Income Tax Act, 1961. The assessee contended that the interest income should be assessed in assessment year 2000-01, relying on the TDS certificate issued by the Land Acquisition Officer, Gurgaon, which indicated the date of payment as 26.4.1999. This date falls within assessment year 2000-01. The revenue argued that the entire interest amount, including the portion of ₹19,11,001/-, should be taxed in assessment year 1999-2000, as the enhanced compensation and interest were received on 26.3.2009 and invested on 27.3.1999. The revenue's appeal to the ITAT was dismissed.

Which sections of the Income-tax Act were involved?

Section 260A,Section 148,Section 5

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 498 of 2008 (O&M) Date of Decision: 7.8.2014 Commissioner of Income Tax, Faridabad ....Appellant. Versus Sh. Subhash Chander and Ram Chander ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MR. JUSTICE FATEH DEEP SINGH. PRESENT: Mr.Tajender K. Joshi, Advocate for the appellant. None for the respondent. AJAY KUMAR MITTAL, J.

1.

This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short “the Act”) against the order dated 14.3.2007 (Annexure A-IV) passed by the Income Tax Appellate Tribunal, Delhi Bench “C”, New Delhi (hereinafter referred to as “the Tribunal”) in ITA No. 4807/D/03 for the assessment year 1999- 2000, claiming the substantial questions of law as mentioned in para 4 of the appeal.

2.

The assessee received a sum of ` 57,73,476/- as interest along with enhanced compensation along with interest on 26.3.2009 for the period from 23.3.1993 to 12.3.1998 and the same was invested in the FDRs on 27.3.1999. The assessee had not filed return of income. Notice under Section 148 of the Act was issued. The Assessing Officer GURBACHAN SINGH 2014.10.01 14:23 I attest to the accuracy and authenticity of this document High Court Chandigarh -2- vide order dated 6.3.2002 (Annexure A-I) framed assessment at a total income of ` 58,23,480/-. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), who vide order dated 17.1.2003 (Annexure A-II) directed the Assessing Officer to assess the interest of ` 19,11,001/- on enhanced compensation in the assessment year 2000-01 and allowed relief in the assessment year 1999-2000 on the basis of TDS certificate issued by the Land Acquisition Officer, Gurgaon showing the date of payment as 26.4.1999. Being dissatisfied, the revenue took the matter in appeal before the Tribunal. The Tribunal dismissed the appeal of the revenue. Hence, the present appeal by the revenue.

3.

We have heard learned counsel for the appellant.

4.

In view of the subsequent decisions of this Court in Commissioner of Income Tax v. Shri Prem Singh, ITA No. 85 of 2010, decided on 5.7.2010, Commissioner of Income Tax, Faridabad v. Karambir Singh L/H of Late Shri Khushi Ram, ITA No. 283 of 2006, decided on 24.8.2010, Commissioner of Income Tax, Faridabad v. Bir Singh (HUF) Ballabgarh, ITA No. 209 of 2004, decided on 27.10.2010, CM Nos. 27928-29-CII of 2010 in ITA No. 85 of 2010 (Commissioner of Income Tax, Panchkula v. Prem Singh, decided on 16.12.2010 and Manjeet Singh (HUF) Karta Manjeet Singh v. Union of India and others, CWP No. 15506 of 2013, decided on 14.1.2014, the matter is required to be remanded to the Tribunal to adjudicate the issue afresh in accordance with law.

5.

Accordingly, the present appeal is allowed and the order dated 14.3.2007 (Annexure A-IV) passed by the Tribunal is set aside and GURBACHAN SINGH 2014.10.01 14:23 I attest to the accuracy and authenticity of this document High Court Chandigarh -3- the matter is remitted to the Tribunal to decide afresh in accordance with law after affording an opportunity of hearing to the respondent-assessee. (AJAY KUMAR MITTAL) JUDGE August 7, 2014 (FATEH DEEP SINGH) gbs JUDGE GURBACHAN SINGH 2014.10.01 14:23 I attest to the accuracy and authenticity of this document High Court Chandigarh

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →