The ACIT, Circle-1(1), Range-1, Visakhapatnam V. Smt Rani Kamala Devi, Visakhapatnam

MA 102/VIZ/2010

• Counselvise Citation: [2010] 123 COUNSELVISE.COM (IT) 5795 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 16-11-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-10-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 16-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Assessee Lawyers: C V S MURTHY
• Section: 28

Judgement Text

MA NO.102 OF 2010 RANI KAMALA DEVI, VSKP PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER MA NO.102/VIZAG/2010 (ARISING OUT OF ITA NO.290/VIZ/2009) ASSESSMENT YEAR : 2005-06 ACIT CIRCLE-1(1), RANGE-1 VISAKHAPATNAM VS. SMT. RANI KAMALA DEVI VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO: AEQPK 8349L APPELLANT BY: SHRI D.S. SUNDER SINGH, DR RESPONDENT BY: SHRI C.V.S. MURTHY, CA ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: BY FILING THIS PETITION THE REVENUE SEEKS RECTIFIC ATION OF ORDER DATED 24-03-2010 PASSED BY THIS BENCH IN THE CASE OF THE ASSESSEE CITED ABOVE. 2. THE MAIN CONTENTION OF THE REVENUE IS THAT THE T RIBUNAL HAS NOT TAKEN NOTE OF THE DECISION PASSED BY HON'BLE SUPREME COURT IN THE CASE OF CIT V GHANSHYAM (HUF) REPORTED IN 315 ITR 1 WHILE DECID ING THE ISSUE OF TAXABILITY OF INTEREST ON ADDITIONAL COMPENSATION RECEIVED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION. 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTE D THAT THE HON'BLE SUPREME COURT IN THE CASE OF V.GHANSHYAM, (SUPRA) H AS HELD THAT THE INTEREST UNDER SECTION 28 OF THE LAND ACQUISITION ACT, 1894, UNLIKE INTEREST UNDER S. 34, IS AN ACCRETION TO THE VALUE AND HENCE, IT IS A PART OF ENHANCED COMPENSATION. IT WAS POINTED OUT THAT THE SAID DECISION OF HON'BLE S UPREME COURT WAS RENDERED PRIOR TO THE DECISION OF THE TRIBUNAL. ACCORDINGLY , THE LEARNED DEPARTMENTAL REPRESENTATIVE PLEADED THAT THE NECESSARY RECTIFICA TION BE CARRIED OUT BY DULY CONSIDERING THE DECISION OF HON'BLE SUPREME COURT C ITED ABOVE. 4. ON THE CONTRARY, THE LEARNED AUTHORISED REPR ESENTATIVE SUBMITTED THAT THE REVENUE IS PLEADING THE REVIEW OF THE ORDER OF THE TRIBUNAL UNDER SECTION 254(2) OF THE ACT, WHICH IS NOT PERMISSIBLE UNDER SECTION 254 (2). HE SUBMITTED THAT THE DECISION RELIED UPON BY THE TRIBUNAL WHILE DECIDING THE ISSUE, VIZ., SMT. RAMABHAI MA NO.102 OF 2010 RANI KAMALA DEVI, VSKP PAGE 2 OF 2 VS. CIT (181 ITR 400) HAS BEEN RENDERED BY THE THRE E MEMBERS BENCH OF THE HON'BLE SUPREME COURT, WHERE THE DECISION NOW PLACE D BEFORE THE TRIBUNAL HAS BEEN RENDERED BY THE TWO MEMBERS BENCH OF THE HON'B LE SUPREME COURT. THE LEARNED AUTHORISED REPRESENTATIVE ALSO SUBMITTED TH AT ANOTHER THREE MEMBERS BENCH OF THE HON'BLE SUPREME COURT IN THE CASE OF K .S.KRISHNA RAO V CIT (181 ITR 408) HAS HELD THAT THE INTEREST PAID ON COMPENSATIO N AWARDED FOR COMPULSORY ACQUISITION OF LAND UNDER SECTION 28 OF THE LAND A CQUISITION ACT, 1894, IS OF THE NATURE OF INCOME AND NOT CAPITAL. ACCORDINGLY HE S UBMITTED THAT THERE IS NO MISTAKE IN THE ORDER PASSED BY THE TRIBUNAL IN THE CASE CITED ABOVE. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. WE HAVE GONE THROUGH THE DECISION OF THE TWO MEMBER BENCH O F HON'BLE SUPREME COURT IN THE CASE OF GHANSHYAM (HUF), REFERRED (SUPRA). WE NOTICE THAT THE DECISION OF SMT. RAMA BAI CASE AND ALSO K.S.KRISHNA RAO CASE WE RE NOT BROUGHT TO THE NOTICE OF THE HON'BLE SUPREME COURT IN THAT CASE. AS POIN TED OUT LEARNED AUTHORISED REPRESENTATIVE, THE DECISION RELIED UPON BY THIS BE NCH IS A LARGER BENCH DECISION OF HON'BLE SUPREME COURT AND IT CANNOT BE SAID TO BE A MISTAKE APPARENT FROM THE RECORD WARRANTING RECTIFICATION UNDER SECTION 254(2 ) OF THE ACT. ACCORDINGLY, THE PRESENT PETITION OF THE REVENUE IS LIABLE TO DISMIS SED AND WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE MISCELLANEOUS PETITION OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 16 TH NOVEMBER, 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:16-11-2010 COPY TO 1 THE ACIT CIRCLE - 1(1), VISAKHAPATNAM 2 SMT. RANI KAMALA DEVI, DASPALLA COMPLEX, SURYABAGH, VISAKHAPATNAM 3 4. THE CIT - I VISAKHAPATNAM THE CIT(A), VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM