Shri M Shivanna vs ACIT | Karnataka High Court 2015

1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 14TH DAY OF SEPTEMBER 2015

PRESENT

THE HON’BLE MR.JUSTICE VINEET SARAN AND THE HON’BLE MR.JUSTICE B MANOHAR ITA No.455 OF 2009 (IT)

BETWEEN :

SHRI. M. SHIVANNA, S/O. LATE MALLELINGAPPA, AGED ABOUT 59 YEARS, RESIDING AT OPPOSITE TYPING INSTITUTE, ANGADI ROAD, BIDADI, RAMANAGAR TALUK & DISTRICT. …APPELLANT (BY SRI.K.K.CHYTHANYA, ADV.,)

AND :

THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, MYSORE. …RESPONDENT (BY SRI.K.V.ARAVIND, ADV - A/W SRI.PADMABUSHAN.N. ADV.,)

2 THIS ITA IS FILED UNDER SEC.260-A OF INCOME TAX ACT 1961, ARISING OUT OF ORDER DATED:26/06/2009 PASSED IN ITA NO.198/BNG/2009, FOR THE ASSESSMENT YEAR 2003-04, PRAYING THAT THIS HON’BLE COURT MAY BE PLEASED TO:

I. FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN,

II. ALLOW THE APPEAL AND SET ASIDE THE ORDER PASSED BY THE ITAT BANGALORE IN ITA NO.198/BNG/2009, DATED:26/06/2009 IN THE INTEREST OF JUSTICE AND EQUITY.

THIS APPEAL IS COMING ON FOR HEARING THIS DAY, VINEET SARAN, J. DELIVERED THE FOLLOWING:

JUDGMENT

Heard Sri.K.K.Chythanya, learned counsel appearing for the appellant-assessee and Sri.K.V.Aravind, learned counsel for the respondent- Revenue and perused the records.

3 2. In this appeal, the following question of law arises for consideration of this Court: “Whether, in the facts and circumstances of the case, the Tribunal is right in law in holding that interest on fixed deposits representing compensation, pleaded against bank guarantee given to KIADB pending resolution of dispute over title of land, is taxable in the respective years when such interest was credited by bank in its books?”

Learned counsel for the parties have agreed that the question involved in this appeal would be squarely covered by the decision of this Court in the case of M.SHIVANNA v/s ASSISTANT COMMISSIONER OF INCOME-TAX in ITA. No.452/2009 decided on 14-09-2015.

Accordingly, for the reasons given in the aforesaid judgment in the case of M.Shivanna V/S

4 Assistant Commissioner of Income-Tax, this appeal stands allowed and the question of law is answered in favour of the assessee and against the Revenue.

Sd/- JUDGE

Sd/- JUDGE mpk/-*

SHRI M SHIVANNA vs. THE ASSISTANT COMMISSIONER OF INCOME TAX