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2017 (2) TMI 854 - AT - Income TaxReopening of assessment - whether AO has rightly brought to tax 1/6th of the amount of interest in each of the assessment years in which interest has been held to be taxable by the Tribunal? - Held that:- From a literal reading of the observation of the ITAT for the A.Y 2006-07 we find that the Tribunal has held that the entire interest has not accrued to the assessee in A.Y 2006-07 but that it pertains to six years and therefore, only 1/6th of the amount can be brought to tax in the relevant A.Y. We do not find any direction to bring the balance of the interest received to tax in the earlier A.Ys. Therefore, the AO invoking the provisions of section 150(1) and reopening the assessments u/s 147 of the Act for the A.Ys before us is not sustainable. In the case of P.G. and W.Sawoo Pvt Ltd (2016 (4) TMI 1002 - SUPREME COURT) has held that income to be charged to tax must accrue or arise at any point of time during the previous year and it can be said to have accrued or arisen only when a right to receive the amount in question is vested in the assessee. It was held in that case that no such right to receive rent accrued to the assessee at any point of time during the A.Y in question, in as much as enhancement of rent though with retrospective effect, was made only in the year 1994. It was held that notice seeking to reopen the assessment for the A.Y 1989-1990 was without jurisdiction or authority of law. - Decided in favour of assessee.
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