TMI Blog2012 (5) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Govinda Chaudhary & Sons (1992 -TMI - 5424 - SUPREME Court) - Decided in favor of the assessee - IT APPEAL NO. 6 OF 2005 - - - Dated:- 18-1-2012 - UMA NATH SINGH AND SATISH CHANDRA, JJ. Sanjiva Shankhdar and Vipineshwar Upadhyay for the Appellant. D.D. Chopra for the Respondent. JUDGMENT Satish Chandra, J. This appeal under section 60-A of the Income Tax Act has been filed against the judgment and order dated 21.07.2004 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.463/LUC/03 for the assessment year 1999-2000. 2. This Court vide order dated 10.02.2005 has admitted the appeal on the following substantial questions of law: ( i ) Whether in light of Ratio of the judgment passed by Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "income from business" as claimed by the assessee in the original return. The view taken by the A.O. was upheld not only by the First Appellate Authority but also by the Tribunal. Still being not satisfied the assessee has filed the present appeal. 5. With this background, Sri Rohit Nandan Shukla, learned Counsel for appellant-assessee submits that the appellant is not seriously challenging the reopening of assessment, under sections 148/147 of the Income-tax Act (substantial question No.2). 6. However, he submits that the interest received on the arbitration award, is the "income from business" as it was not earned separately. For this purpose, he relied on the ratio laid down in the case of CIT v. B.N. Agarwala Co. [2003] 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the respondent relied on the impugned order passed by the Tribunal. He further submits that Section 44 AD of the Income Tax Act is applicable in the instant case, where the profit rate will be determined @8% in the case of a contractor. He also submits that the assessee has not incurred any expenditure for earning the interest. So, interest income can not be treated as income from business. 10. We have heard learned counsel for parties at length and gone through the materials available on record. 11. From the record, it appears that in this matter, the Civil Judge, Lucknow vide its order dated 28.04.1995 appointed a sole Arbitrator, who has made an award of Rs.12.65 lakhs on 22.12.1995 along with interest @6% and the same was uphe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
