Double taxation of decretal interest rejected after income was already assessed in another assessee's hands

Interest on a decretal amount could not be taxed again in the assessee's hands where the same income had already been finally assessed in the hands of a sister concern. On those facts, the Tribunal correctly deleted the addition because identical income cannot lawfully be subjected to tax twice in the hands of different assessees, and no referable question of law arose from that deletion. The reference petition therefore failed.

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Issues: Whether the interest received on the decretal amount, having already been assessed in the hands of the sister concern, could again be taxed in the hands of the assessee, and whether any referable question of law arose from the Tribunal's deletion of the addition.

Analysis: The decretal amount together with interest had been received by the sister concern, and the interest had in fact been finally assessed in its hands. The same income could not lawfully be taxed twice in the hands of two different assessees. In that view, the Tribunal was correct in deleting the addition from the assessee's assessment, and no question of law arose for reference.

Conclusion: The deletion of the interest income was upheld and the reference petition failed.

Ratio Decidendi: Income that has been finally assessed in the hands of one assessee cannot again be taxed in the hands of another assessee on the same facts.

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