Commissioner Of Income Tax, Faridabad v. Shri Bhoop Ram Dagar (Huf
High Court
30 Nov 2010 In favour of: Revenue
Forum / Bench
High Court · phhc
Parties
Commissioner Of Income Tax, Faridabad v. Shri Bhoop Ram Dagar (Huf
Date of order
30 Nov 2010
Assessment year(s)
—
Outcome
Allowed
Case summary
In Commissioner Of Income Tax, Faridabad v. Shri Bhoop Ram Dagar (Huf, the High Court (2010) allowed the appeal. The decision went in favour of the Revenue.
Issue: 4.The point that arises in this appeal is whether the intereston enhanced compensation is taxable in the hands of the assessee inthe year of receipt.
Summary auto-generated from the order below — read the full judgment for the complete reasoning.
Sections referenced in this judgment
The order — as passed by the High Court
ITA Nos. 316 of 2007
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA No. 316 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Bhoop Ram Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
1.This order shall dispose of ITA Nos. 316 to 321 of 2007 asas learned counsel for the appellant submitted that similar questions oflaw are involved therein.
2.ITA No. 316 of 2007 was admitted by this Court vide orderdated October 15, 2007 for determination of the following substantialquestion of law:-
“Whether, on the facts and circumstances of thecase, the Hon'ble ITAT is right in holding that the AOshall be within his jurisdiction to bring to tax theelement of interest on accrual basis upon its finaldetermination by the higher courts, in contradictionwith the judgment of Hon'ble jurisdictional High Court
of Punjab and Haryana following the judgment ofApex Court in the case of CIT vs. Rama Bai (181 ITR400) whereby interest on enhanced compensation isto be taxed on accrual basis irrespective of thependency of appeal in higher courts in respect ofenhanced compensation.” (ITA No. 176 of 2005 andITA No. 177 of 2005 in the cases of CIT, Faridabadvs. Dilbagh Singh, respectively).”
3.We have heard learned counsel for the appellant.
4.The point that arises in this appeal is whether the intereston enhanced compensation is taxable in the hands of the assessee inthe year of receipt.
5.The similar issue came up for consideration before thisCourt in ITA No. 209 of 2004 (The Commissioner of Income Tax,Faridabad v. Bir Singh (HUF) Ballabgarh) decided on 27.10.2010,wherein it was concluded as under:-
“(a)that 'income from Business or profession' and'income from other sources' are ascertain on thebasis of system of accountancy followed by theassessee;'income from other sources' are ascertain on thebasis of system of accountancy followed by theassessee;
(b)where assessee is not maintaining books of accountsby adopting any specific method, it shall be treated tobe cash system of accountancy;by adopting any specific method, it shall be treated tobe cash system of accountancy;
(c)the interest under Section 34 to be awarded by theCollector partakes the characters of compensationand is taxable in the year of receipt in view of SectionCollector partakes the characters of compensationand is taxable in the year of receipt in view of Section
45(5)(b) of the Act; and
(d)under cash system of accountancy, the element ofinterest awarded by the Court received on enhancedamount of compensation under Section 28 of the1894 Act falls for taxation under Section 56 as'income from other sources' in the year of receipt.”
6.In view of the above, the appeals are allowed and thequestion of law is answered in favour of the revenue and against theassessee.
(AJAY KUMAR MITTAL) JUDGE
November 30, 2010gbs
(ADARSH KUMAR GOEL)JUDGE
ITA Nos. 316 of 2007
-4-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 317 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Bharat Lal Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
(ADARSH KUMAR GOEL)
JUDGE
ITA Nos. 316 of 2007
-5-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 318 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
ITA Nos. 317 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Bharat Lal Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
(ADARSH KUMAR GOEL)
JUDGE
ITA Nos. 316 of 2007
-5-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 318 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Rohtas Singh Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
November 30, 2010gbs
(ADARSH KUMAR GOEL)
JUDGE
ITA Nos. 316 of 2007
-6-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 319 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Sukh Ram Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.
Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
(ADARSH KUMAR GOEL)
JUDGE
ITA Nos. 316 of 2007
-7-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 320 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Chet Ram Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
(ADARSH KUMAR GOEL)
JUDGE
ITA Nos. 316 of 2007
-8-
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITA Nos. 321 of 2007
Date of Decision: 30.11.2010
Commissioner of Income Tax, Faridabad
Versus
Shri Nathi Ram Dagar (HUF)
....Appellant.
...Respondent.
CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL.
PRESENT: Ms. Urvashi Dhugga, Advocate for the appellant.
AJAY KUMAR MITTAL, J.
The appeal is allowed.
For reasons, see the detailed order of even date recorded
in ITA No. 316 of 2007 [Commissioner of Income Tax, Faridabad v.Shri Bhoop Ram Dagar (HUF)].
(AJAY KUMAR MITTAL) JUDGE
(ADARSH KUMAR GOEL)
JUDGE
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