M/S.R.S.Ranga Das vs The Asst. Commissioener Of Income ...
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     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.

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

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.

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