9911796707
TMI Blog2016 (9) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of any new information post-filing return, the AO cannot reopen the assessment. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 13,91,426/- being the interest received on enhanced compensation. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in considering the return filed for earlier assessment years before AO as additional evidences under Rule 46A. 6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting to take into consideration the revised returns filed for earlier assessment years which clearly demonstrate that the interest income has been duly accounted for in the year to which it pertains and hence the addition made in the year under consideration is unsustainable. 7(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in holding that the entire amount of the interest of Rs. 13,91,426/- pertains to the year under consideration ignoring the material facts available on record that this interest pertains to the period fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration, the assessee had claimed the TDS deducted on the enhanced compensation received in the return of income filed. The Assessing Officer initiated proceedings u/s 148, alleging that interest on enhanced compensation amounting to Rs. 13,91,427/- received by the assessee from Land Acquisition Officer in November, 2003 has escaped assessment. 2.4 The assessee contended before the Ld. A.O. that he had already revised its return of income for the earlier years by spreading over the interest as per the judgment of Hon'ble Punjab & Haryana High Court in the case of Tuhiram Vs Land Acquisition Collector and others reported in 199 ITR 490 (being the Jurisdictional High Court in case of the assessee). 2.5 The reason for the issuance of notice u/s 148 of the I.T. Act, 1961 as recorded by the Assessing Officer is as under: "Reasons for Issue of Notice u/s 148 of the Income tax Act. 1961: The assessee filed return of income on 30/9/2004, declaring an income of Rs. 4,20,760/-. The assessee derived income from9 business, house property and interest income. The return was processed u/s 143(1) dated 17/6/2005 and a refund of Rs. 1,27,953/- was issued on 4/7/2005. Later on, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Ld. A.R. submitted that admittedly, the alleged interest received is the payment of interest u/s 34 of the Land Acquisition Act 1894. Ld. A.R. submitted that the assessee revised its return for earlier years when the payment was received. He submitted that the enhanced interest received does not pertain to the financial year relevant to Assessment Year under consideration. It pertained to the period from effective date of compensation to the actual date of decision of the Court. He referred to and relied upon the decision of Hon'ble Jurisdictional High Court in the case of Tuhiram Vs Land Acquisition Collector and others (supra), wherein the Hon'ble Punjab & Haryana High Court had mandatorily required the spread over of income on year to year basis and to pay the tax accordingly. In these circumstances, it has been submitted by the Ld. A.R. that the assessee could not file his return reflecting the total interest income in the year of its receipt as it actually relates to various previous Assessment Years. 5.2 Ld. A.R. also submitted that the law relating to TDS, does not restrict the assessee for claiming the tax deduced on such interest received during the financial y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 148. The absence of order under section 143(3) is no bar and finally the Hon'ble Court in this case concluded as under:- "It is not necessary for reopening' under section 147 that assessment should have been finalized under section 143(3) once the assessment for the relevant year was admittedly completed vide an intimation under section 143(1) the notice under section 147/148 issued to the petitioner was not vitiated merely for the reason that notice under section 143(2) had not been issued to it." 4.04 The Hon'ble Punjab& Haryana High Court further considered this issue in the case of Ramesh Chander Singla Vs. CIT(A) 2 ANR (2011) 330 ITR 28S (P&H) . The catch note from that decision is reproduced be1ow:- "The assessee, a Development Officer of the LIC claimed deduction on incentive bonus and additional conveyance allowance received by him. The return of the assessee was processed under section 143(1) of the Income Tax Act, 1961, thereby, benefit of deduction was taken by the assessee. Later, the Assessing Officer held that the assessee was to be governed by the head of "Salary" and that he could get deduction by treating income under the head of ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of notice u/s 148 'of the Act by the AO is held as per law and grounds' no. 1 & of appeal are as such dismissed." 6.3 We do not find any infirmity in the findings of Ld. CIT(A). Respectfully following the ratio laid down in the decisions above, we dismiss these grounds raised by assessee. 6.4 The issue raised under Ground No.4 to 8 argued before us is regarding taxability of a sum of Rs. 13,91,472/- received by the assessee in the year relevant to the assessment year under consideration, which admittedly pertains to more than fifteen earlier years as discussed above. The assessee revised his returns for the three years and offered the amount of interest relating to those years to tax. The remaining amount relating to the earlier years was not offered as the time limit for revising the returns or rectifying the assessments had already expired. The AO took a stand that the entire amount is chargeable to tax in the year of receipt. The Hon'ble Supreme Court in Rama Bai VS CIT (1990) 181 ITR 400 (SC) has held that Interest on enhanced compensation awarded under the Land Acquisition Act accrues year after year and not on the date of granting enhanced compensation. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment of a year for which the matching income is not offered for taxation. In other words, both the income and credit for TDS go hand in hand and cannot be disassociated from each other. As the amount of interest on which tax has been withheld is not chargeable to tax in the instant year, the assessee cannot equally be allowed credit for TDS on such interest income against other income. When confronted with this position, the ld. AR contended that since the AO allowed credit for such TDS, the Tribunal cannot disallow the same. 6.8. We are not convinced with the submission. The patent reason for not disallowing credit for such TDS by the AO is that he charged to tax the entire interest income in the year in question and impliedly following the prescription of section 199, allowed the credit for TDS. As the interest income is held to be not chargeable to tax in the year under consideration, the assessee cannot be allowed to avail credit for TDS on such interest income against tax on his other income. To sum up, the interest income of Rs.Rs.13,91,472/ - is not chargeable to tax and further no credit for TDS of Rs.l,41,825 on such interest can be allowed in the instant year. 7. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
