ITO, V. Smt. Sayarabai H. Sanghavi,

ITA 1324/PUN/2009

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 3265 (ITAT-PUNE)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2002-2003
• Appeal Filed On: 19-11-2009
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: HEMANTKUMAR C LEUVA
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES, PUNE SINGLE MEMBER CASE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBE R I.T.A. NO. 1324/PN/2009 : A.Y. 2002-03 I.T.O. WARD 2(2) JALGAON : APPELLANT VS. SMT. SAYARABAI HARAKCHAND SANGHVI MAIN ROAD, PACHORA DIST. JALGAON PAN APHPS 4427 H : RESPONDENT APPELLANT BY : SHRI HEMANTKUMAR C. LEUVA RESPONDENT BY: NONE ORDER THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-II NASIK DATED 17-8-2009 AG AINST THE DELETION OF ADDITION OF RS. 1,20,974/- ON ACCOU NT OF INTEREST RECEIVED ON ENHANCED COMPENSATION. 2. IT WAS POINTED OUT ON BEHALF OF THE ASSESSEE THA T SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE I.T.A.T. IN ASSESSEES OWN CASE IN ITA NO. 1629 TO 1633/PN/2005 AND 808 & 809/PN/2005 DATED 29-9- 2008 WHEREIN SIMILAR MATTER WAS RESTORED TO THE FIL E OF THE A.O BY OBSERVING AS UNDER : IN THIS VIEW OF THE MATTER, I RESTORE THIS GROUND BACK TO THE FILE OF THE A.O WITH A DIRECTION TO REV ISE THE ASSESSMENT AND TAX THE ENHANCED COMPENSATION ITA NO. 1324/PN/09 SMT. SAYARABAI H SANGHAVI A.Y. 2002-03 2 AND INTEREST AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3. THE ISSUE RAISED BY THE REVENUE REGARDING APPLICABILITY OF INTEREST ON ACCOUNT OF COMPENSATIO N IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F I.T.A.T (SUPRA). THE CIT(A) ALSO FOLLOWING THE SAID ORDER OF THE I.T.A.T. HAS DIRECTED THE A.O TO RECOMPUTE THE INCOME IN THE LIGHT OF I.T.A.T. DECISION DISCUSSED ABOVE. I ALSO FIND THAT HONBLE SUPREME COURT IN THE CASE OF CIT VS. GHANSHYAM (HUF) (2009) 26 DTR (SC) 129 HAS HELD THA T ENHANCED COMPENSATION INCLUDING INTEREST BECAME PAYABLE AT DIFFERENT STAGES AND IS TO BE TAXED IN T HE YEAR OF RECEIPT SUBJECT TO ADJUSTMENT. 4. ACCORDING TO ME, THIS MATTER SHOULD BE APPRECIAT ED IN THE ABOVE BACKGROUND. SO IN THE INTEREST OF JUS TICE, I RESTORE THIS ISSUE TO THE A.O WITH A DIRECTION TO D ECIDE THE SAME AS PER FACT AND LAW INCLUDING THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF GHANSHYAM (HUF ) (SUPRA) AFTER PROVIDING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA NO. 1324/PN/09 SMT. SAYARABAI H SANGHAVI A.Y. 2002-03 3 5. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATIST ICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 28 TH SEPTEMBER 2010 . SD/- (SHAILENDRA KUMAR YADAV) JUDICIAL MEMBER PUNE,DATED THE 28 TH SEPTEMBER 2010 ANKAM COPY FORWARDED TO: (1) ASSESSEE (2) DEPARTMENT (3) CIT- IV PUNE (4) CIT(A)- III PUNE (5) THE D.R. ITAT PUNE BENCH, PUNE TRUE COPY BY ORDER, ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL, PUNE BENCHES, PUNE