TMI Blog1996 (3) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... few facts from the statement of the case sent by the Income-tax Appellate Tribunal, Patna Bench "A", Patna. The assessee, it appeared, filed a suit for recovery of certain money due to him from the Public Works Department of the State of Bihar. The suit was decreed on September 13, 1965, in favour of the assessee for the sum of Rs. 52,386 with costs. The amount so decreed included interest to the extent of Rs. 11,352 for the period from February 8, 1961, to September 13, 1965. The assessee received the decreed amount as well as the interest on March 20, 1967. The assessee did not maintain any books of account. He was a contractor and derived income from contract work and plying of trucks. His income was being assessed on estimate and was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings under section 271(1)(c) of the Act were independent and it was not material whether the assessee accepted the quantum of assessment or not. His submission was that there was no accrual of income of interest and that the suit decreed by the court was the subject-matter of appeal and till the appeal was decided by the higher court, it could not be said that the assessee received any income. Mr. Jain also sought to bring on record the judgment in appeal against the decree wherein he said that the award of interest in favour of the assessee had been set aside. His submission, therefore, in short was that the assessee could not be visited with penalty under section 271(1)(c) of the Act on an amount which ultimately was not to be his income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner had not maintained any accounts and was assessed on receipt of amounts, the interest was taxable as income of this year when it had actually been received by the assessee. They held that the amount had been correctly assessed in this year and was not assessable in a different year. The Tribunal, however, committed an error of record while observing moreover we find that the court's decree was for the payment of interest on the date of realisation. It is apparent from the decree that interest for the period up to September 13, 1965, had already been awarded to be paid and further interest only was ordered to be paid till the date of realisation. Thus the right to receive the interest as per the order of the court had already accru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an excuse. The assessee had not indicated this fact even in the earlier year. Moreover, we find that the court's decree was for the payment of interest on the date of realisation. In this view of the matter and also considering the fact that the assessee was not maintaining any accounts and was assessed on the receipt of amounts, the interest was taxable as the income of this year when it had actually been received by the assessee. There is no question of the income being the income for a different year and, in our view, the amount had been correctly assessed in this year. The assessee had also accepted the assessment of this amount in this assessment year. The fact that no mention was made regarding the court's decree awarded, the award o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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