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2017 (11) TMI 65 - HC - Income TaxReopening of assessment - interest component received as enhanced compensation taxability - Held that:- It is apparent and obvious to us that the AO in the original assessment proceedings did not examine the question of taxability of interest as this aspect appears to have completely escaped his attention. It is not even the case of the Petitioner that the AO had examined the said question in the original assessment proceedings. On the question of figures given in the reasons to believe, we would record that the AO had to proceed on the basis of documents available on record. It is not the case of the Assessee that he had not received interest amount as indicated in the reasons to believe. The figure or quantum is disputed. Even if we are inclined to accept the contention of the Petitioner that the figures of interest as indicated in the reasons to believe recorded for issue of reassessment notice are not correct, it cannot be disputed that the Petitioner was also entitled to a part of the interest. The figures may be wrong or incorrect for the reason that the interest had to be bifurcated and divided amongst several recipients and the details of such recipients was not available with the AO when he recorded the said reasons. We have considered the contention raised by the Petitioner that the interest element would partake the character of enhanced compensation and is not taxable, on the basis of the ratio in the case of Ghanshyam (HUF)[2009 (7) TMI 12 - SUPREME COURT ] but we are not giving any opinion on the same at this stage. These aspects, we believe, are matters which the AO will have to examine in detail during the course of reassessment proceedings. We would not like to comment on the issues which the AO will have to determine and decide in the course of reassessment proceedings. AO should have been more careful while disposing of the objections/representation made by the Petitioner.
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