THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE N.TUKARAMJI
I.T.T.A.No.417 of 2006
JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. A.V.A.Siva Kartikeya, learned counsel for the
appellant and Ms. Sapna Reddy, learned counsel for the
respondent.
2. This appeal has been preferred under Section 260-A of the
Income Tax Act, 1961 (briefly 'the Act' hereinafter) by the assessee
against the order dated 30.01.2006 passed by the Income Tax
Appellate Tribunal, Hyderabad Bench 'A', Hyderabad (Tribunal) in
I.T.A.No.570/Hyd/2003 for the assessment year 2000-01.
3. Learned counsel for the appellant fairly submits that issue
raised in this appeal is squarely covered by an order of this Court
dated 02.09.2014 passed in I.T.T.A.No.68 of 2003 and batch.
4. Relevant portion of the order dated 02.09.2014 passed in
I.T.T.A.No.68 of 2003 and batch reads as follows:
Though the appellant raised a strong plea that the order of
assessment for the year 1995-96 ought not to have been
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reopened by issuing a show cause notice under Section 148 of
the Act, we are not impressed by that argument. The reason cited
by the assessing officer for reopening of the assessment is valid
and referable to the facts that can be verified from the record.
.....
Coming to the second aspect: It has already been mentioned that the appellant was undertaking civil works and some of the disputes that arose in relation thereto have been referred to arbitration. In the respective awards, the arbitrators have quantified the amount to be paid to the appellant. Naturally, the matters landed before the Court and in compliance with the directions issued by the concerned Courts, 50% of the amount covered by the awards was deposited. While in one case, it was Rs.32,00,000/-, in the other case it was Rs.3,3137,750/-. The appellant was permitted to withdraw such amounts on furnishing bank guarantee. The amount of Rs.32,00,000/- remained in deposit for quite some time and the appellant received the accrued interest being Rs.2,02,975/-. Tax is levied thereon. It is not in dispute that the appellant has received a sum of Rs.2,02,975/- as interest on the amount which was deposited towards 50% of the amount covered by the award. Whatever be the legal character of the amount in deposit, the interest that has accrued thereon and received by the assessee undoubtedly becomes income. The appellant has not even pleaded that the Court which directed the deposit of the amount has imposed any condition to the effect that even the withdrawal of the interest would be subject to outcome of the proceedings. Though an ::3::
endorsement was made in the return that the amount received towards interest on the amount deposited in the legal proceedings cannot be treated as income and though an order in terms thereof was passed, the assessing officer reopened the same at a later point of time by issuing notice under Section 148 of the Act. There is no uncertainty surrounding the amount of interest received by the appellant. It constituted his income without any reservations whatever. The Tribunal has taken the correct view of the matter and ITTA No. 168 of 2003 deserves to be dismissed.
5. Following the above reproduced order dated 02.09.2014 passed in I.T.T.A.No.68 of 2003 and batch, this appeal is dismissed. No costs.
As a sequel, miscellaneous petitions, pending if any, stand closed.
__________________ UJJAL BHUYAN, CJ _______________ N.TUKARAMJI, J Date: 22.02.2023 LUR ::4::