Itta/417/2006 Of M/S.r.s.ranga Das v. The Asst.commissioner Of Income Tax

IN THE HIGH COURT FOR THE STATE OF TELANGANAAT HYDERABAD WEDNESDAY ,THE TWENTY SECOND DAY OF FEBRUARYTWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYANANDTHE HON'BLE SRI JUSTICE N.TUKARAMJI INCOME TAX TRIBUNAL APPEAL NO: 4't7 OF 2006 lncome Tax Appeal Under Section 260 A of the lncome Tax Act,1961 aggrieved by the order of the lncome Tax Appellate Tribunal,Hyderabad Bench "A" Hyderabad dated 30-01-2006 in l.T.A.No. 570 /Hyd/ 2003 ( A.Y. 2000-01 ) preferred against the order of theCommissioner of lncome Tax ( Appeals ) -V, Hyderabad dated 27-01-2003 in ITA No.0314 /AC-4 (1) / CIT (A) -V 12002-03 preferred againstthe order of the Assistant Commissioner of lncome tax , Circle 4 (1),Hyderabad dated 28-03-2002 in PAN / GIR No. R- 308 Between M/S.R.S.Ranga Das. Rlo.2-2-1137131C11, New Nallakunta, Contractors,...APPELLANTHyderabad AND...APPELLANTHyderabad AND The Asst. Commissioner Of lncome Tax, Circle 4 [1], Hyderabad. ...RESPONDENT Counsel for the Appellant: SRl. A. V.A SIVA KARTIKEYA Counsel for the Respondent: Ms. SAPNA REDDY for SRI J.V.PRASAD(sc FoR rNcoME TA)() The Court delivered the following: Judgment THE H DTIi!E]I.IJE CHIEFJUSTICE UJJAL BHI]Y4]! AND TI tEON' LERIST CETRAM ttI.'I T.Ao7f06 JUDGMENT, [p,, ][,hc ]Hor'bh lhe ( /,14 lt,tt.! t litrt l)ttlt),,) Heard N r. A.\r.A.Sir.a Itarrikcya, Icarnc..l c()r.rrr scl lor the appcllanr and l,{s. Sapnx ltcddr-, lcarnccl cr.rrrrs<,1 ior therespondent 2' 1'his appt al has bcr:n prcfcr'ccr urrclcr Sccri.n r,i;-r\ of thcIncome Tax Ac , 19(r1 @ricflt ,thc .\cr, hc.rcinrfre r) I>r rlrc rissesseeagainst the ord :r datcd 10.01 .20()6 passe tl [r' rhc .:,r.rc .l,axAppellate l-ribu; al, II'de.rb.cl IJc..c. ,.\,. IIrcl.r.rr':rrl ,l.rrbrrral) inI f'A.No.5l0/H,d/2003 firr rhc ass.ss.rer)t \.(,:rr )(){ r0 ,}1. 3. Learned c runsel [or thc lpDcllarrr J:rrrlr sui;rrrit; rhar issucraiscd in this ap;:ar is sguarcl' c,r crctr lrr :r trccr:i,rr rt rhis (_.urtdatcd 02.09.2014 c:,ssed rn [.'1 .'1..\ \o 6fi ()i](rol rrrtl b;rt:h. +. Relevant p rricn of thc or-clcr rl:rrc,l 02 1( lo l_r p1s;cci ln I.'l'.'l'.r\.No.68 of 2(01 tncl l>rrch rr.:rtls :rs lr,llor,. s_ Though the aJ,pcllant .riscrj :r :rronr, plr..L rlrlrr 1lrt. ,rr..lt.r olassesstncnt lbr thc ycrr 199.r !(r riLrriht r)()r r, ) itll\ t, l1111 iIIIIIII II reopencd by issrung a show cause [noricc ][undcr Section ][148 ][of]the Act, we are not impresscd [bv th:rt argumcnt. ][The ][reason ][cited]by the assessing officcr for [reopcnir-rg ]of [the ][assessment ][is ][valid]aod reFerable to the facts that can be [verified ][ftom ][the tecord.] Coming to the sccond [aspect: ][It ][has ][airea<iy ][been ][mentioned]that the appelJant was undertaking [civil ][works ][and ][some ][of ][the]disputes that arose in [relauon ][thcreto havc ][been ][teferred ][to]arbitration. In the respecltvc [arvards, ][the ][arbitrators ][have]quantifred the amount t.r [bc ][paid ]to [thc ][apPellant. ][Narurall,v.]the mattcrs landccl bcfrrrc tirc [Court ][and ][in ][compliance ][with ][t]re]directions issucd by thc [conccrned ][Courts. ][50o/o ][of ][the ][amount]coveted by thc awards [rvas ][depositcd. ][\X'ihile ][in ][one ][case, ][it ][was]Rs.32,00,000/-, in thc otlicr [crse ][it ][was ][Rs.3,3137,750/-. ][The]appellant was permittcd [to ][urrhdrarv ][such ][amounts ][on ][furnishing]bank guarantee. Thc [amourrt ][of ][Rs-32,00,000/- ][remained in]deposit for quitc some [rinrc ][and the ][appeliant received ][dre]accrued intcrcst bcing [Rs ][2.02,9'i ][) ]/ [- ]['I-ax ][is ][levied theteoo.] It iq not in disputc that thc [appellant ][has ][rcceived ][a ][sum ][o[]Rs.2,02,975/- as intcresr [or1 ][thc ][arn()uflt ][which ][was ][deposited]towards 50% of thc [amount covcrcd ][bv ][the award. \Whatever ][be]the legal charactcr of [thc amount ][in ][dcposit, the ioterest that ][has]accrued thcrcon ancl [rcccivcd ][[;r' ][the ][assessee ][undoubtedly]bccomes incomc. ['I ]hc appclltnt [has ][not ][evcn pieaded ][that ][the]Court which directcd thc [dcposit ][of ][the ][amount ][has ][imposed ][any]condition to thc citi'ct that [cr-ctr ][thc ][rvithdrawal ][of ][the ][interest]would bc subicct to [()utcotnc ]of [thc ][procccdings ][Though ][an] endorsem(nt u,as ma.de in thc rcturn that the am(,l.lr-lt rcccrvedtowardslt,lrcst ofl the amount dcposircd it th,: lcgalprocecdinlS ,ranflot be treatcd as incomc and rhoug r :Ln order inprocecdinlS ,ranflot be treatcd as incomc and rhoug r :Ln order interms thel:of was passed, the assessing ofi'icer rer;perred dresalne at art(:r lloint of ume by issurng noticc under iiecton 148of the Acr'l'hcre is no uncertainty surroundrng the am()unt ofintercst re:eived by the appellant. II consrrrurerd l:is Lncomcwlthout ar,/ [resiervations ]whatever. ['I'hc ][-fribLrnal ]has tal.:cn thecorrect viev of the rrratter and ITTA No. 16t oi 2i)tr3 dcscn.esto be dism;sr:d.salne at art(:r lloint of ume by issurng noticc under iiecton 148of the Acr'l'hcre is no uncertainty surroundrng the am()unt ofintercst re:eived by the appellant. II consrrrurerd l:is Lncomcwlthout ar,/ [resiervations ]whatever. ['I'hc ][-fribLrnal ]has tal.:cn thecorrect viev of the rrratter and ITTA No. 16t oi 2i)tr3 dcscn.esto be dism;sr:d. 5. Irollow rg the above reproduccd ordcr drrc,:l ( 2.0g.2011passed in I. t.'I..{.No.68 ol 2003 and barch, hrs appcalISdismrssed. N r costs. As a st quel, miscellaneous petiti()ns, J.rlndinrl i a nr,, stand closed ud sd/-c.v. [Lr K ] !',il lls[xA/TTRUE COPY// €-__- [-]sE()'l'loNl [oFFlcER] To1. The [lncc]ne Tax Appellate [Tribunal ]' [Hyderabad ][Berct ] [llyderabad'](with rec)r(ls [if anY)]2. The Cor,ir..n"t',rf [lncome Tax ][(Apoeals ][) ][\'' ][Hyd ][jr'rba' ][l' ]'3 The [Ass]rir"j.'c".ritti"ner [of lncome ][Tax ][( ][ircle ][r' ][' ][)' ][Flyderabad]4. One i"'saI. [n. ][J,^ ][Siva Kartikeva' Advocate ][ ]^5. One i" ti.. srr,", [n"ddy ][for ][Sri-J ] [Prasad Stardin'; ][Counsel]for lncore Tax 6. Two [Ct]C,:pies1. The [lncc]ne Tax Appellate [Tribunal ]' [Hyderabad ][Berct ] [llyderabad'](with rec)r(ls [if anY)]2. The Cor,ir..n"t',rf [lncome Tax ][(Apoeals ][) ][\'' ][Hyd ][jr'rba' ][l' ]'3 The [Ass]rir"j.'c".ritti"ner [of lncome ][Tax ][( ][ircle ][r' ][' ][)' ][Flyderabad]4. One i"'saI. [n. ][J,^ ][Siva Kartikeva' Advocate ][ ]^5. One i" ti.. srr,", [n"ddy ][for ][Sri-J ] [Prasad Stardin'; ][Counsel]for lncore Tax 6. Two [Ct]C,:pies ?\) HIGH COI. RT DATED:21 [t0212023] JUDGMENT()o-lTTA.No.4 l7 of 2006*'ei-.-s'I.l.f,,..l'r,,!,1:ly DISMISSING TI EIIT\\\'ITI]()( T C()\I\