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2015 (11) TMI 421 - AT - Income TaxInterest levy u/s 234B - can the assessee be held to be in default in payment of advance tax arising from the above stated interest income? - assessee’s stand claiming spread over of the enhanced compensation income - Held that:- It transpires from the case law of Ghanshyam HUF [2009 (7) TMI 12 - SUPREME COURT] itself that the hon’ble Punjab & Haryana high court in its lead judgment reported as CIT vs. Karanbir Singh (2007 (1) TMI 167 - PUNJAB AND HARYANA HIGH COURT) had accepted spreading over by following decision of hon’ble supreme court in Bikram Singh’s case (1996 (9) TMI 6 - SUPREME Court). The picture that emerges is that before the hon’ble apex court cleared this air of confusion as to whether the enhanced compensation is taxable by following principle of spread over or year of receipt, the assessee’s case was covered by above stated decisions. We hold in these facts that the assessee’s default in question was very much justifiable. He proceeded as per the law as it prevailed at the relevant time. A co-ordinate Bench of the tribunal in Intas Exports (2013 (7) TMI 926 - ITAT AHMEDABAD) considered issue of similar interest levy u/s 234B wherein the assessee had defaulted in AY 2003-04 based on amendment in section 80HHC of the Act introduced by the Finance Act, 2005 with retrospective effect from 01.04.2001. It holds that default giving rise to section 234B interest is not attributable to the concerned assessee. The Revenue does not point out any exception on facts. We follow the very decision and conclude that the present assessee could not have foreseen the hon’ble apex court decision holding assessment of the enhanced compensation in the year of receipt as against that of spread over. The assessee’s arguments challenging section 234B interest succeed. The impugned interest levy u/s 234B is deleted. - Decided in favour of assessee.
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