Rama Bai v. CIT

181 ITR 400Supreme Court of India1990#325 most cited

What is Rama Bai v. CIT authority for?

Interest income is taxable on either an accrual or cash basis, determined by accounting principles. This method was applicable prior to legislative changes that simplified the taxation of interest income.

258

judgments rely on this decision, according to BharatTax’s citation analysis of 367,357 Indian tax judgments — from 2011 to 2026.

Also referred to as

Rama Bai v. CIT · 181 ITR 400 · taxation of interest income · accrual basis · cash basis · accounting principles for interest · Land Acquisition Act interest · Section 56(2)(viii) · Section 57(iv) · Section 45(5) · Section 145A

Also reported as

84 CTR 144

Sections most often in play

Section 57(iv)Section 56(2)(viii)Section 10(37)Section 1961Section 45(5)Section 145ASection 263Section 143(3)

Issues it is cited on

section 56(viii)section 2(viii)section 45(5)(c)section 155(16)section 45(5)(b)section 23(1a)section 145a(b)section 145bsection 45(5)section 145b(1)section 57(iv)section 104

Judgments citing Rama Bai v. CIT

Sh. Nitya Nand, Gurgaon vs. ITO, Gurgaon

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 6508/DEL/2016[2013-14]Status: DisposedITAT Delhi30 Jan 2020AY 2013-14

Bench: Shri Bhavnesh Saini & Shri O.P. Kantassessment Year: 2013-14

Section 10Section 10(37)Section 142(1)Section 143(2)Section 143(3)Section 271(1)Section 28Section 44ASection 56(2)(viii)Section 89

…a revenue receipt liable to tax under the Income Tax Act. "This position of law has been consistently reiterated by this Court in the case of TMK Govindaraju Chetty vs. Commissioner of Income-tax. Madras [66 ITR 465], Rama Rai & Ors. Vs. CJT, Andhra Pradesh [181 ITR 400] and K.S. Krishna Rao vs. CJT, A. P. [181 ITR 408], Thus by a catena of judicial pronouncements, it is sell led law about the intern received on delayed payment of the compensation is a revenue receipt eligible to income lax. It is true that in amending the definition of "interest" in Section 2(28A) interest was defined lo mean interest payable i…

Surendra Laxmanrao Vaidya, Gadag vs. Income Tax Officer, Ward-2, Gadag

In the result, the appeal of assessee is allowed

ITA 1952/BANG/2017[2012-13]Status: DisposedITAT Bangalore03 Jan 2020AY 2012-13

Bench: Shri A.K. Garodia & Shri Pavan Kumar Gadaleshri Surendra Laxmanrao Vaidya, Kariyamma Kallu Badavane, Near Hatalgeri Naka, Gadag. ….Appellant Pan Avupv2546H Vs. Income Tax Officer, Ward 2, Gadag. ……Respondent.

For Appellant: Shri B.S. Balachandran, AdvocateFor Respondent: Shri Sunil Kumar Agarwal, Addl. CIT (D.R)
Section 10(37)Section 143(1)Section 143(2)Section 143(3)Section 199Section 28Section 56(2)(viii)Section 57

…sion" or "Income from other sources", shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further the Hon'ble Supreme Court in the case of Smt. Rama Bai v. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed to…

Smt. Lakshmamma, Shivamogga vs. The Income Tax Officer, Ward- 3, Shivamogga

The appeal of the Assessee is allowed

ITA 1387/BANG/2019[2015-16]Status: DisposedITAT Bangalore22 Nov 2019AY 2015-16

Bench: Shri N.V. Vasudevan, Vice- & Shri A.K.Garodiaassessment Year : 2015-16 Smt. Lakshmamma, Vs. The Income Tax Officer, Purdal Road, Ward-3, Gadikoppa, Shivamogga-577 201 Shivamogga-577 205 Pan No: Akkpl 6281 A Appellant Respondent Appellant By : Shri.Tata Krishna, Advocate Respondent By : K.R.Narayana, Jcit (Dr) Date Of Hearing : 19.11.2019 Date Of Pronouncement : 22.11.2019 O R D E R Per N.V. Vasudevan, Vice-This Is An Appeal Filed By The Revenue Against The Order Dated 26.3.2019 Of The Cit(Appeals), Davangere, Relating To Assessment Year 2015-16. The Facts & Circumstances Under Which This Appeal Arise For 2. Consideration Are That The Assessee Owned Agricultural Lands Measuring 6.8 Acres In Malligenahalli, Kasaba Hobli, Shivamogga Taluk Which Was Compulsorily Acquired By The Special Land Acquisition Officer [Hereinafter Referred To As “The Slao”], Under The Provisions Of The Land Acquisition Act, 1894 Vide Notification Dated 22.9.2000. Aggrieved By The Award As Originally Passed Awarding Compensation For The Land Acquired By The Govt., Page 2 Of 12

For Appellant: Shri.Tata Krishna, AdvocateFor Respondent: K.R.Narayana, JCIT (DR)
Section 10(37)Section 2Section 23Section 23(2)Section 28Section 56Section 57

…sion" or "Income from other sources", shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further the Hon'ble Supreme Court in the case of Smt. Rama Bai v. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. Page 10 of 12 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced compensation shal…

DCIT, Circle, Panchkula vs. Shri Mohan Singh Chandel, Ramgarh

Appeal is allowed

ITA 771/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh20 Nov 2019AY 2011-12

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकर अपील सं./ Ita No. 771/Chd/2019 "नधा"रण वष" / Assessment Year : 2011-12 The Dcit, Shri Mohan Singh Chandel, बनाम Panchkula Circle, Quilla Fort, Panchkula Ramgarh, Panchkula "थायी लेखा सं./Pan No: Aezps6967F अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: NoneFor Respondent: Shri Manoj Mishra, CIT DR
Section 10(37)Section 145ASection 2Section 28Section 34Section 56Section 56oSection 57

…(No.2) Act, 2009 was not in connection with the decision of the Hon'ble Supreme Court in Ghanshyam (HUF) (supra) but was brought in to mitigate the hardship caused to the assessee on account of the decision of the Supreme Court in Smt. Rama Bai v. CIT, (1990) 181 ITR 400 (SC) whereby it was held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. Therefore, when one reads the words "interest received on compensation or enhanced ITA No. 771/Chd/2019- Shri Mohan Singh Chandel, Panchkula 6 compensation" in section 145A of the I.T. Act, the same have to be constr…

DCIT, Circle, Sirsa vs. Sh. Vaibhav Choudhary, Fatehabad

Appeal is allowed

ITA 175/CHANDI/2019[2015-16]Status: DisposedITAT Chandigarh30 Oct 2019AY 2015-16

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकर अपील सं./ Ita No. 175/Chd/2019 "नधा"रण वष" / Assessment Year : 2015-16 The Dcit, Sirsa Circle, Shri Vaibhav Chaudhary, बनाम Sirsa So Shri Vijay Chaudhary , Near Ratia Tri Crossing, Fatehabad "थायी लेखा सं./Pan No: Aekpc8527N अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Manjit Singh, CIT DRFor Respondent: Shri Tej Mohan Singh, Advocate
Section 145Section 145ASection 155(16)Section 23Section 23(2)Section 28Section 34Section 4Section 45(5)Section 45(5)(c)

…(No.2) Act, 2009 was not in connection with the decision of the Hon'ble Supreme Court in Ghanshyam (HUF) (supra) but was brought in to mitigate the hardship caused to the assessee on account of the decision of the Supreme Court in Smt. Rama Bai v. CIT, (1990) 181 ITR 400 (SC) whereby it was held that arrears of interest computed on delayed or enhanced compensation shall ITA No. 175/Chd/2019- Shri Vaibhav Chaudhary, Fatehabad 4 be taxable on accrual basis. Therefore, when one reads the words "interest received on compensation or enhanced compensation" in section 145A of the I.T. Act, the same have to be construed…

ITO, W-2, Panchkula vs. Shri Jagir Singh, Panchkula

In the result the appeal of the Revenue as well as Cross objections of the assessee are dismissed

ITA 587/CHANDI/2019[2011-12]Status: DisposedITAT Chandigarh21 Oct 2019AY 2011-12

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकरअपीलसं./Ita Nos. 587/Chd/2019 "नधा"रणवष" / Assessment Year : 2011-12 The Ito, Vs. Shri Jagir Singh, S/O Shri Parsu, Ward-2, Vill.Bana, Madanpur, Po बनाम Panchkula Ramgarh, Sector 25, Panchkula "थायीलेखासं./Pan No:Cqlps9517F अपीलाथ"/Appellant ""यथ"/Respondent & C.O. No. 24/Chd/2019 (In Ita No. 587/Chd/2019 "नधा"रणवष" / Assessment Years : 2011-12 Shri Jagir Singh, S/O Shri Vs. The Ito, Parsu, Ward-2, बनाम Vill.Bana,Madanpur, Po Panchkula Ramgarh, Sector 25, Panchkula "थायीलेखासं./Pan No: Cqlps9517F अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Nikhil Goyal, AdvocateFor Respondent: Shri Gulshan Raj, CIT DR
Section 145Section 155(16)Section 23Section 23(2)Section 28Section 34Section 4Section 45(5)Section 45(5)(c)Section 56(2)

…(No.2) Act, 2009 was not in connection with the decision of the Hon'ble Supreme Court in Ghanshyam (HUF) (supra) but was brought in to mitigate the hardship caused to the assessee on account of the decision of the Supreme Court in Smt. Rama Bai v. CIT, (1990) 181 ITR 400 (SC) whereby it was held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. Therefore, when one reads the words "interest received on compensation or enhanced compensation" in section 145A of the I.T. Act, the same have to be construed in the manner interpreted by the Hon'ble Supreme Court in…

Navinbhai Manilal Patel, Gandhinagar vs. ITO, Ward-3, Gandhinagar

In the result, the appeal of the assessee is partly allowed

ITA 298/AHD/2018[2008-09]Status: DisposedITAT Ahmedabad16 Oct 2019AY 2008-09
For Appellant: Shri Tushar P. Hemani, A.RFor Respondent: Shri L.P. Jain, Sr.D.R
Section 147Section 234ASection 271

…nsideration (i.e. 2008-09). Therefore, the amount of such interest was allocated over a period of 18 years based on mercantile system of accounting and after placing reliance on the judgment of Hon’ble Supreme Court in the case of Rama Bai v/s CIT reported in 181 ITR 400. 5.2 The Ld. AR also claimed that the PAN of the assessee was available with the concerned authority, therefore, the TDS certificate was issued in the name of the assessee. Page 5 of 9 Asstt. Year 2008-09 6. On the other hand, the d. DR vehemently supported the order of the authorities below. 7. We have heard the rival contentions of both the p…

Landbase India Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 4999/DEL/2015[2011-12]Status: DisposedITAT Delhi26 Aug 2019AY 2011-12

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

Landbase India Ltd., Gurgaon vs. DCIT, New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 4998/DEL/2015[2010-11]Status: DisposedITAT Delhi26 Aug 2019AY 2010-11

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

Landbase India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 4560/DEL/2011[2005-06]Status: DisposedITAT Delhi26 Aug 2019AY 2005-06

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

M/S Landbase India Ltd., Gurgaon vs. ACIT, New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 138/DEL/2016[2012-13]Status: DisposedITAT Delhi26 Aug 2019AY 2012-13

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

Landbase India Ltd., New Delhi vs. DCIT, New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 653/DEL/2011[2007-08]Status: DisposedITAT Delhi26 Aug 2019AY 2007-08

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

ACIT, New Delhi vs. M/S. Landbase India Ltd., New Delhi

In the result, appeal of the assessee for assessment year 2011-12 is allowed

ITA 4849/DEL/2011[2005-06]Status: DisposedITAT Delhi26 Aug 2019AY 2005-06

Bench: Smt Beena A Pillai & Shri Prashant Maharishi

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri J. K. Mishra, CIT DR
Section 143(3)Section 147Section 148Section 32(1)

…d to be taxable on pro-rata basis in the following decisions:  CIT vs. T. N. K. Govindarajulu Chetty : 165 ITR 231 (SC) - Held that interest received for 2 years is to be spread over according to the mercantile system of accounting  Rama Bai &Ors. V. CIT : 181 ITR 400 (SC)  CIT v. Dinesh Kumar Goel : 331 ITR 10 (Del.)  CIT v. Punjab Tractor Co-operative Muli-purpose Society Ltd. : 234 ITR 105 (P&H)- Amount received in advance under post warranty service charges, Held that amount pertaining to the year under consideration could only be taxed not the entire amount received  CIT v. Coral Electronics (P) Ltd. :…

Kansai Nerolac Paints Ltd, Mumbai vs. Addl CIT RG 6(2), Mumbai

ITA 7196/MUM/2013[2007-08]Status: DisposedITAT Mumbai15 May 2019AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Ms. Aarti VissanjiFor Respondent: Shri. Rignesh K. Das (DR)
Section 143(3)Section 144C(3)Section 145ASection 14A

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court, in the case of Rama Bai v. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to taxpayers. With a view to mitigating the hardship, it is proposed to amend section 145A to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

DCIT 6(2), Mumbai vs. Kansai Nerolac Paints Ltd, Mumbai

ITA 6789/MUM/2013[2007-08]Status: DisposedITAT Mumbai15 May 2019AY 2007-08

Bench: Shri Mahavir Singh & Shri Ramit Kocharआयकर अपीऱ सं./I.T.A. No.6789/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ Dcit Circle -6(2) M/S. Kansai Nerolac Paints Ltd., R.No. 563, Aayakar Bhavan, Nerolac House, K.G. Marg, M.K. Road, Churchgate, V. Lower Parel, Mumbai-400020 Mumbai-400013 स्थायी ऱेखा सं./ Pan :Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) .. आयकर अपीऱ सं./I.T.A. No.7196/Mum/2013 (नििाारण वर्ा / Assessment Year: 2007-08) बिाम/ M/S. Kansai Nerolac Paints Addl. Cit Circle -6(2) Ltd., R.No. 669, Nerolac House, K.G. Marg, Aayakar Bhavan, V. Lower Parel, Mumbai 400013 M.K. Road, Mumbai- 400020 स्थायी ऱेखा सं./ Pan : Aaacg1376N (अपीऱाथी /Appellant) (प्रत्यथी / Respondent) ..

For Appellant: Ms. Aarti VissanjiFor Respondent: Shri. Rignesh K. Das (DR)
Section 143(3)Section 144C(3)Section 145ASection 14A

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court, in the case of Rama Bai v. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to taxpayers. With a view to mitigating the hardship, it is proposed to amend section 145A to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Income Tax Officer Ward-2, Vijayapur vs. Shri Mallanna Annappa Yadavannavar Kaman Kham Bazar, Vijayapur

In the result the appeal of the revenues dismissed

ITA 2076/BANG/2017[2014-15]Status: DisposedITAT Bangalore24 Apr 2019AY 2014-15

Bench: Shri. A. K. Garodia

For Appellant: Shri. C. Sandeep, CAFor Respondent: Shri. R. N. Siddappaji, Add. CIT
Section 10Section 14Section 145Section 145ASection 56Section 56(2)

…sion" or "Income from other sources", shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further the Hon'ble Supreme Court in the case of Smt. Rama Bai v. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. ITA.20176/Bang/2017 Page - 4 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced c…

Income Tax Officer Ward-1 & Tps, Bagalkot vs. Shri Prabhayya Basayya Saraganachani, Bagalkot

In the result, Revenue’s appeal for assessment year 2014-15 is dismissed

ITA 858/BANG/2018[2014-15]Status: DisposedITAT Bangalore13 Mar 2019AY 2014-15

Bench: Shri N. V. Vasudevan & Shri Jason P Boazassessment Years : 2014-15 The Income Tax Officer, Vs. Shri. Prabhayya Basayya Saragachari, At. Muchakhandi Tq & Ward 1 & Tps, Dist. – Bagalkot – 587 102. Bagalkot. Pan : Doips 6443 L Appellant Respondent

For Appellant: Shri. C. H. Sundar Rao, CITFor Respondent: Shri. Kambiyavar, Advocate
Section 10(37)Section 14Section 145Section 145ASection 2Section 56Section 57

…ore the amendment to section 56 of the I.T. Act, 1961. (3) The leanred CIT(Appeals) erred in holding that the sub-clause (viii) to sub-section (2) of section 56 was amended to nullify the decision of Hon'ble Supreme Court in the case of Rama Bai v. CIT (1990) 181 ITR 400 (SC) which is not correct as for this purpose, section 145A(b) was amended to bring to interest income in the year of receipt instead of year after year on accrual basis. (4) The learned CIT(Appeals) erred in coming to the conclusion that the ratio of the decision of Ghanshyam (HUF) supra, is still applicable in respect of interest under section…

Dabur Invest Corp, New Delhi vs. Prcit-16, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 1764/DEL/2018[2014-15]Status: DisposedITAT Delhi11 Mar 2019AY 2014-15

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2013-14] & [A.Y 2014-15]

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri G.C. Srivastava, Sr Adv
Section 263

…arket value of Aviva share is ‘zero’. 2. Since, there is a fixed minimum annual return of 20% on investment price, therefore, this transaction is in the nature of interest income and reliance is placed on Rama Bai and ors. Vs. CIT dated 08.11.1989. ISC). 1990 181 ITR 400 (SC). 3. Recurring return of 20% annually and the return at the time of Divestment of shares are only two limbs of same receipt arising out of same J.V. agreement and therefore they are in nature of ‘Business Income’ as held in the case of CIT vs. Govind Chaudhary & sons dated 22.04.1992 1993 203 ITR 881 SC which says that interest income draws i…

Dabur Invest Corp, New Delhi vs. Prcit-16, New Delhi

In the result, the appeals of the assessee in ITA Nos

ITA 1763/DEL/2018[2013-14]Status: DisposedITAT Delhi11 Mar 2019AY 2013-14

Bench: Shri N.K. Billaiya & Ms. Suchitra Kamble[A.Y 2013-14] & [A.Y 2014-15]

For Appellant: Shri M.P. Rastogi, AdvFor Respondent: Shri G.C. Srivastava, Sr Adv
Section 263

…arket value of Aviva share is ‘zero’. 2. Since, there is a fixed minimum annual return of 20% on investment price, therefore, this transaction is in the nature of interest income and reliance is placed on Rama Bai and ors. Vs. CIT dated 08.11.1989. ISC). 1990 181 ITR 400 (SC). 3. Recurring return of 20% annually and the return at the time of Divestment of shares are only two limbs of same receipt arising out of same J.V. agreement and therefore they are in nature of ‘Business Income’ as held in the case of CIT vs. Govind Chaudhary & sons dated 22.04.1992 1993 203 ITR 881 SC which says that interest income draws i…

Sh. Balbir Singh, Sirsa vs. Pr. CIT, Hisar

ITA 652/CHANDI/2018[2013-14]Status: DisposedITAT Chandigarh31 Oct 2018AY 2013-14
For Appellant: Shri. Gautam Jain, Sh. Lalit MohanFor Respondent: Dr. Gulshan Raj
Section 263(1)

…amendment it is evident that aforesaid amendments are introduced to mitigate the hardship that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis as held by Apex Court in the case of Rama Bai vs. CIT reported in 181 ITR 400. The amendments are for arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. Thus by making amendment in section 56(2), 57 and 145A, legislation makes the arrear of interest computed on delayed or enhanced compensation shall be taxable in the year of receipt, which does not have any effect on the bi…