Sri Late T.K.Sekar by wife Majula, Kancheepuram V. ITO, Kancheepuram

CO 36/CHNY/2009

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7626 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 28-08-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-08-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 08-04-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K E B RENGARAJAN JUNIOR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A. NO. 1175/MDS/2008 ASSESSMENT YEAR : 2005-06 AND C.O.NO. 36/MDS/2009 THE INCOME-TAX OFFICER, WARD-I(1), KANCHIPURAM 631 501. (APPELLANT) VS. SHRI T.K.SEKAR (HUF), 22 PILLAIYAR KOIL STREET, THIRUMAZHISAL, CHENNAI 602 107. PAN AABHT8349E (RESPONDENT/CROSS- OBJECTOR) APPELLANT BY : SHRI K.E.B.RENGARAJAN, JUNIOR STANDING COUNSEL RESPONDENT BY : NONE DATE OF HEARING : 28 TH AUGUST, 2012 DATE OF PRONOUNCEMENT : 28 TH AUGUST, 2012 O R D E R PER DR. O.K.NARAYANAN, VICE PRESIDENT THE APPEAL IS FILED BY THE REVENUE. THE CROSS OBJ ECTION IS FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YE AR IS 2005- 06. THE APPEAL AND THE CROSS OBJECTION ARE DIRECT ED AGAINST THE ITA 1175/08 & CO 36/09 :- 2 -: ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I X AT CHENNAI DATED 10.3.2008 AND ARISE OUT OF THE ASSESSMENT COM PLETED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1961. 2. THERE IS A DELAY OF ONE DAY IN FILING THE APPEAL BY THE REVENUE. FOR THE REASONS STATED IN THE CONDONATION PETITION FILED BY THE REVENUE, THE SAID DELAY OF ONE DAY IS CONDON ED AND THE APPEAL IS ADMITTED FOR HEARING. 3. THE GROUND RAISED BY THE REVENUE IN ITS APPEAL I S THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE ADDITION MADE ON ACCOUNT OF INTEREST RECEIPT OF ` 85,63,998/-. IT IS THE CASE OF THE REVENUE THAT SEC.45(5)(C) PROVIDES FOR TAXATION OF INTERIM COMPENSATION OR CONSIDERATION REFERRED TO IN CLAUSE (A) OR (B) OF THAT SECTION AND SINCE THE INTEREST ON COMPE NSATION IS INCIDENTAL THERETO, IT WAS CORRECTLY BROUGHT TO TAX BY THE ASSESSING AUTHORITY. 4. IN FACT, THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS DELETED THE SAID AMOUNT FROM THE COMPUTATION OF TO TAL INCOME ON THE GROUND THAT THE INTEREST WAS GRANTED BY THE HON BLE JURISDICTIONAL HIGH COURT AS AN INTERIM MEASURE AND FINAL ORDER IN THIS MATTER WAS NOT PASSED. ITA 1175/08 & CO 36/09 :- 3 -: 5. WHEN THE MATTER WAS CALLED ON FOR HEARING, NOBOD Y WAS PRESENT FOR THE RESPONDENT-ASSESSEE IN SPITE OF NO TICE. THEREFORE, WE PROCEED TO DISPOSE OF THE MATTER AFTE R HEARING SHRI K.E.B.RENGARAJAN, THE LEARNED STANDING COUNSEL APPE ARING FOR THE REVENUE. 6. IN THE PRESENT CASE, THE ASSESSMENT ORDER WAS PA SSED WAY BACK ON 24.12.2007. NOW, WE ARE IN 2012. BY ALL P ROBABILITIES, THE HONBLE HIGH COURT MIGHT HAVE PASSED ITS FINAL ORDER. THE ASSESSING OFFICER MAY STUDY THE SAID FINAL ORDER OF THE COURT, IF PASSED, AND DECIDE THE MATTER AFRESH RELATING TO TH E TAXABILITY OF INTEREST. HE HAS ALSO TO VERIFY WHETHER THE ASSESS EE HAS OFFERED THE ENTIRE ADDITIONAL COMPENSATION INCLUDING INTERE ST THEREON, AFTER PASSING OF FINAL JUDGMENT OF THE HONBLE HIGH COURT . ALL THESE THINGS REQUIRE VERIFICATION AND EXAMINATION OF DETA ILS. THEREFORE, WE FIND THAT THIS IS A FIT CASE TO BE REMITTED BACK TO THE ASSESSING OFFICER FOR FRESH EXAMINATION. THE ASSESSING OFFIC ER MAY ISSUE NOTICE TO THE ASSESSEE AND CALL FOR NECESSARY DETAI LS AND RE- EXAMINE THE QUESTION OF TAXABILITY OF INTEREST AND PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW. ITA 1175/08 & CO 36/09 :- 4 -: 7. AS THE ORDERS OF THE LOWER AUTHORITIES HAVE BEEN SET ASIDE, AS FAR AS THIS POINT IS CONCERNED, THE CROSS OBJECT ION FILED BY THE ASSESSEE BECOMES INFRUCTUOUS. 8. IN RESULT, THE APPEAL FILED BY THE REVENUE IS TR EATED AS ALLOWED FOR STATISTICAL PURPOSES AND THE CROSS OBJE CTION FILED BY THE ASSESSEE IS DISMISSED AS INFRUCTUOUS. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 28 TH OF AUGUST, 2012. SD/- SD/- (CHALLA NAGENDRA PRASAD) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI, DATED THE 28 TH OF AUGUST, 2012 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GUARD FILE