TMI Blog2007 (10) TMI 319X X X X Extracts X X X X X X X X Extracts X X X X ..... ts order dt. 14th Sept., 2004 in ITA Nos. 374 and 375/Del/2003 for the asst. yrs. 1992-93 and 1996-97. 2. The Revenue has raised the following ground in this appeal: "The learned CIT(A) has erred in law and on the facts of the case in directing the AO not to charge interest under ss. 234A and 234B observing that interest income on compensation/enhanced compensation is taxable only when the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also levied interest under ss. 234A and 234B of the Act from the due date till the completion of assessment. The learned CIT(A) held that as per the Special Bench of Tribunal in the case of Dy. CIT vs. Padam Prakash (HUF) (2006) 104 TTJ (Del)(SB) 989 : (2006) 10 SOT 1 (Del)(SB), the interest income on compensation/enhanced compensation is taxable only when the dispute pertaining to the acquisition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ashwani Taneja on the other hand, strongly supported the appellate order. He submitted that the assessment pertains to asst. yr. 1992-93. Since the dispute continued and was finally settled on 30th July, 1996, the assessee cannot visualize either payment of advance tax during the relevant financial year i.e. 1991-92 or file his return of income before the due date which is 30th June, 1992. Even t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his return of income has failed to do so before the due date prescribed under s. 139(1) of the Act. Similarly interest under s, 234B is chargeable provided the assessee fails to pay advance tax as required under s. 208 of the Act. However, the fact in the present case revealed that prior to settlement of dispute, the assessee had not earned any income subject to taxation except the interest on co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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