The Commissioner Of Income Tax, Faridabad v. Shri Jai Bhagwan

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.330 of 2009 Date of Decision: March 10, 2010 The Commissioner of Income Tax, Faridabad .......Appellant Versus Shri Jai Bhagwan .......Respondent CORAM:- HON'BLE MR.JUSTICE M. M. KUMARHON'BLE MR.JUSTICE JITENDRA CHAUHAN Present:Ms.Urvashi Dhugga, Advocatefor the appellant.Mr.SK Mukhi, Advocatefor the respondent. Notes: 1) To be referred to the reporters or not? 2) Whether the judgment should be reported in the Digest? --- M. M. KUMAR, J. This is revenue's appeal filed under Section 260-A of theIncome Tax Act, 1961 (for brevity 'the Act') challenging order dated3.10.2008 passed by the Income Tax Appellate Tribunal, Delhi Bench 'D',New Delhi in ITA No.2186/DEL/2008, in respect of assessment year 2002-03. The appellant-revenue has sought to raise the following substantialquestions of law for determination of this Court: “1. Whether, on the facts and circumstances of the case, theLd.ITAT is right in holding that the capital gain cannot becharged on the basis of year of receipt of the enhancedcompensation, if the matter is subjudice? 2. Whether in law it is still an open question that thecompensation and/or enhanced compensation would be taxableonly when it attained finality irrespective of the remedialprovisions introduced in the Act from 1.4.2004 by insertion ofsub clause (c) of sub section (5) of section 45 read with sub-section (16) of section 155 and there is no more doubt that ifthe compensation and/or enhanced compensation issubsequently reduced, it would be assessed accordingly underthese provisions? 3. Whether, on the facts and circumstances of the case, theLd.ITAT was right in holding that if the litigation regardingquantum of additional compensation was pending before aCourt and had not attained finality, interest on enhancedcompensation would not accrue and could be subjected to taxonly when the issue of enhanced compensation is finallysettled? 4. Whether in law it is an open question that the interest and/orenhanced interest would be taxable only when it attainedfinality irrespective of the remedial provisions of section 154and when there is no doubt that if the interest is reduced orincreased, it would be rectified accordingly under theseprovisions.” It has not been disputed before us that the matter is covered bya judgment of Hon'ble the Supreme Court rendered in the case titled asCommissioner of Income-Tax v.Ghanshyam, (2009) 315 ITR 1 (SC)against the assesseeand in favour of the Revenue. Accordingly, orderpassed by the Tribunal based on the judgment of this Court rendered in thecase titled as Chandi Ram & ors. v.CIT 217 CTR 113 is hereby set aside and the matter is remanded back for decision afresh on the other issueas the Tribunal has not decided those issues on account of the applicabilityof the judgment of this Court in Chandi Ram's case (supra). Disposed of accordingly. Parties through their counsel are directed to appear before the CIT (A) on 5.4.2010. ( M. M. KUMAR ) JUDGE March 10, 2010SRM ( JITENDRA CHAUHAN ) JUDGE