Commissioner Of Income Tax, Hisar v. Pandit Shanti Sarup

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A.s No. 275 to 281 of 2008DATE OF DECISION : 03.07.2008 Commissioner of Income Tax, Hisar .... APPELLANT Versus Pandit Shanti Sarup ..... RESPONDENT CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTALHON'BLE MR. JUSTICE RAKESH KUMAR GARG Present:Mr. Sanjeev Kaushik, Advocate,for the appellant-revenue. * * * SATISH KUMAR MITTAL , J. ( Oral ) The revenue has filed these 7 appeals under Section 260-A ofthe Income Tax Act, 1961, pertaining to 7 different assessment years i.e.from 1987-88 to 1993-94, challenging the order dated 30.4.2007, passed bythe Income Tax Appellate Tribunal, Chandigarh Bench `B' Chandigarh,whereby vide a consolidated order, 8 appeals pertaining to 8 differentassessment years i.e. from 1987-88 to 1994-95 have been disposed of. In allthese appeals, the following substantial questions of law have been raisedfor consideration of this Court : “(i) Whether on the facts and in the circumstances of thecase, the ITAT is right in holding that interest on enhanced compensation will not accrue and not be liable to tax till thetime the dispute relating to interest payable on enhancedcompensation is pending before a Court of law and not attainedfinality ? (ii)Whether on the facts and circumstances of the case, theITAT is right in holding the interest on enhanced compensationto be taxed on accrual basis only after the finality of litigationregarding enhanced compensation or interest, in contradictionwith the judgment of this Court following the judgment ofApex Court in the case of CIT Vs. Rama Bai (181 ITR 400)(ITA No. 176 of 05 and ITA No. 177 of 05 in the case of CIT,Faridabad Vs. Naresh Kumar and CIT, Faridabad Vs. DilbaghSingh, respectively) ? On the basis of similar facts, these very questions have already been considered by this Court in ITA No. 490 of 2007, title as `TheCommissioner of Income tax, Faridabad versus Shri Hardwari Lal', decidedon 26.3.2008, and it has been concluded as under :- “11.Thus, in view of the above discussed judgements of theHon'ble Apex Court and this Court, the interest on enhancedcompensation would not accrue till the issue of enhancedcompensation is finally decided and thereafter on attaining thefinality of determination of enhanced compensation by theCourt, the interest accrued to the assessee has to be spread overHon'ble Apex Court and this Court, the interest on enhancedcompensation would not accrue till the issue of enhancedcompensation is finally decided and thereafter on attaining thefinality of determination of enhanced compensation by theCourt, the interest accrued to the assessee has to be spread over on an annual basis right from the date of delivery of possessiontill the date of the order of the court on the time basis.” The issues raised in these appeals are squarely covered by theaforesaid decision and this fact has not been disputed by the learned counselfor the appellant. In view of the above, we do not find any illegality in theimpugned order of the Tribunal and no substantial question of law survivesfor our consideration. Accordingly, all these appeals are dismissed. ( SATISH KUMAR MITTAL )JUDGE July 03, 2008 ndj ( RAKESH KUMAR GARG )JUDGE