THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
I.T.T.A.No.320 of 2005
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. A.V.A.Siva Kartikeya, learned counsel
for the appellant and Mr. J.V.Prasad, learned Standing
Counsel for Income tax Department appearing for the
respondent.
2. This appeal has been preferred by the assessee as the appellant under Section 260A of the Income Tax Act, 1961 (briefly, 'the Act' hereinafter) assailing the order dated 26.04.2005 passed by the Income Tax Appellate Tribunal, Hyderabad Bench 'B', Hyderabad (Tribunal), in I.T.A.No.563/Hyd/2001 for the assessment year 1997-98.
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3. Though the appeal was admitted by the order dated 13.12.2005, substantial questions of law were not framed.
4. From the appeal memo we find that appellant has proposed the following questions as substantial questions of law:
a) Whether on the facts and in the circumstances of the case the Tribunal is right in sustaining the reopening of assessment under Section 147 of the Act when entire primary and necessary facts were disclosed at the time of the original assessment?
b) Whether on the facts and in the circumstances of the case the Tribunal is justified in holding that the interest earned on the amount deposited in the bank which is received as an interim measure on the directions of the High Court is an income when the arbitration award itself is in dispute and pending adjudication before the High court?
5. From the above, it is seen that as per the first question, appellant has challenged reopening of 3 assessment under Section 147 of the Act. The second question pertains to whether Tribunal was justified in treating the interest earned on the amount deposited in the bank received as interim award as an income, when the arbitration award is pending adjudication.
6. Tribunal in the order dated 26.04.2005 followed its earlier decision rendered on 29.07.2002 in the appeals for the assessment years 1995-96 and 1996-97 in the case of the assessee itself. Against the aforesaid order dated 29.07.2002, assessee preferred appeal before this Court under Section 260A of the Act, being I.T.T.A.No.168 of 2003. This Court by the order dated 02.09.2014 held that opening of assessment was valid and that interest accrued on interim award deposited in bank was income chargeable to tax.
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7. Following the above decision, the questions proposed are answered against the assessee and in favour of the revenue.
8. The present appeal is accordingly dismissed.
Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs.
______________________________________ UJJAL BHUYAN, CJ ______________________________________ C.V.BHASKAR REDDY, J 21.09.2022 tmk/vs