TMI Blog2019 (3) TMI 1538X X X X Extracts X X X X X X X X Extracts X X X X ..... TDS has been deducted therefrom - HELD THAT:- The question relating to taxability of interest on compensation awarded by the Motor Accident Claims Tribunal is identical to the question of law framed for adjudication before the Hon’ble Supreme Court in assessee’s own case. Therefore, we admit the claim of the assessee in terms of section 158A(3) of the Act. Given that the matter is currently pending adjudication before the Hon’ble Supreme Court, the Assessing officer is directed to apply the directions of the Hon’ble Supreme Court as soon as the same is pronounced in the present case. The matter is accordingly set-aside to the file of the AO with the above directions. - Appeal of the assessee is allowed for statistical purposes. - ITA. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition towards interest income made by the Assessing Officer was deleted and the Assessing Officer was also directed to withdrawal credit of TDS on such interest granted to the assessee. 3. Now, the assessee is in appeal against the said findings of the ld. CIT(A) and has taken the following two grounds of appeal: 1. In the facts and circumstances of the case and in law the ld. CIT(A) has erred in confirming the action of the ld. AO in not accepting the legal proposition that the interest, being part of compensation on account of death of her husband in vehicular road accident and being discretionary, is not income, hence, not liable to tax under the Income Tax Act, 1961. The action of ld. CIT(A) is illegal, unjustified, arbitrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uted and there was no absolute right in the petitioner assessee to receive the compensation/interest and consequently, interest directed to be paid by the High Court by way of interim Order was contingent upon finality of the litigation under the Motor Vehicles Act, 1988; hence not income liable to tax? B) Whether the impugned judgment is erroneous in law because, if, the Insurance Company succeeds finally then the petitioner-assessee (Claimant) is obliged under law to return interest amount by way of restitution under section 144 CPC?. C) Whether interest directed to be paid under interim order of the High Court did not amount to debt incurred as there was no pre- existing debtor-creditor relationship hence the interest did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8A of the Income Tax Act, 1961 and the same may kindly be allowed and the present appeal may be kept in abeyance till final adjudication of the said Special Leave to Appeal. It was submitted that final decision of aforesaid Special Leave to Appeal would be made applicable in the present Appeal and she will not raise such question of law in the relevant case in appeal before any Appellant authority. 7. During the course of hearing, the report from the Assessing Officer was called for and the ITO, Ward 6(3) vide his report dated 30.07.2018 has confirmed that the issue involved in the impugned assessment year i.e. the taxability of the interest income is the same as in the case of Special leave petition which is pending adjudication before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal No. 199 of 2015 of Hon ble Rajasthan High Court, Jaipur), the Hon ble Supreme Court of India has issued notices to the Income Tax Department and also stayed the operation of the aforesaid judgment of the High Court. It is further submitted that the issue involved in the AY 2009-10 is same i.e. the taxability of the interest income in the head of income from other sources. 8. Section 158A of the Act reads as under:- 158A (1) Notwithstanding anything contained in this Act, where an assessee claims that any question of law arising in his case for an assessment year which is pending before the Assessing Officer or any appellate authority (such case being hereafter in this section referred to as the relevant case) is identical w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the question of law arising in the relevant case is identical with the question of law in the other case; or ( ii) reject the claim if he or it is not so satisfied. ( 4) Where a claim is admitted under sub- section (3),- ( a) the Assessing Officer or, as the case may be, the appellate authority may make an order disposing of the relevant case without awaiting the final decision on the question of law in the other case; and ( b) the assessee shall not be entitled to raise, in relation to the relevant case, such question of law in appeal before any appellate authority or for a reference before the High Court under section 256 or the Supreme Court under section 257 or in appeal before the Supreme Court under sect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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