M/S.R.S.Rangadas vs The Asst.Commissioner Of Income ...
2022 Latest Caselaw 5197 Tel

         THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
                                       AND
          THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY


                          ITTA.No.406 of 2005

JUDGMENT: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)


       Heard Mr. A.V.Krishna Kaundinya, learned counsel

for the appellant and Mr. K.Raji Reddy, learned Standing

counsel for Income Tax Department appearing for the

respondent.

2. This appeal has been preferred under Section

260A of the Income Tax Act, 1961 (briefly 'the Act'

hereinafter) against the order dated 26.04.2005 passed by

the Income Tax Appellate Tribunal, Hyderabad Bench "B",

in I.T.A.No.565/Hyd/2001 for the assessment year 1999-

2000.

3. While admitting the appeal vide the order dated

13.12.2005, substantial question of law was not framed.

From the memorandum of appeal, we find that following is

the substantial question of law:

'Whether on the facts and in the

circumstances of the case, Tribunal was justified

in holding that the interest earned on the amount

deposited in the Bank received as an interim

measure under directions of the High Court is an

income when the arbitral award itself is in dispute

and pending adjudication before the High Court?

4. Mr. A.V.Krishna Kaundinya, learned counsel for

the appellant fairly submits that this substantial question

was also one of the substantial questions of law in

I.T.T.A.No.320 of 2005 filed by the appellant itself for the

assessment year of 1997-98. While disposing of

I.T.T.A.No.320 of 2005 vide order dated 21.09.2022, this

Court held that Tribunal has followed its earlier decision

dated 29.07.2002 in appeals filed by the appellant itself for

the assessment years 1995-96 and 1996-97.

5. Against the order dated 29.07.2002, appellant had

preferred appeal before this Court under Section 260A of

the Act being I.T.T.A.No.168 of 2003. This Court by 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.

6. Following the above decision, ITTA No.320 of 2005

was dismissed.

7. That being the position, the substantial question of

law as framed is answered in favour of the respondent and

against assessee.

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 19.10.2022 MRM