TaxTMI 
TaxTMI 
2010 (10) TMI 861
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.... 'the Tribunal') passed in ITA No. 1442/Del/2009 in respect of asst. yr. 2005-06:- "(i) Whether, on the facts and in the circumstances of the case, the learned Tribunal was right in law in conforming the order of the learned CIT(A) in holding that the interest on enhanced compensation was not taxable in the hands of the assessee, Shri Laxman Swaroop Goel as the interest on enhanced compensation had not attained finality as the matter was under dispute before the Hon'ble High Court which finally decided the issue on 17th Nov., 2007, therefore, the interest was not chargeable to tax in the year of receipt i.e., 2004-05 relevant to the asst. yr. 2005-06 disregarding the fact interest on enhanced compensation would be taxed in the yea....
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....ho are owners of the land, inherited by them from their maternal grandfather. Enhanced compensation and interest thereon were received on acquisition of the said land. The income received by way of interest was assessed as capital gain in the hands of the father of the minor children under s. 64(1A) of the Act. The CIT(A) upheld the plea of the assessee that amount received had not attained finality and income of the minor children from inherited property could not be clubbed in the hands of the father. The above view has been affirmed by the Tribunal. It was observed:- "I have carefully considered the contentions of the learned Authorised Representative and perused the order of assessment. I completely concur with him that the AO....
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....nts (i) and (ii) in para 5, in view of the judgment of Madras High Court in CIT vs. K.J. Ramaswamy (2006) 205 CTR (Mad)(FB) 352 : (2006) 286 ITR 77 (Mad)(FB). Further, connection must be proximate before an income can come within the ambit of s. 64, it must be proved to have arisen directly or indirectly from a transfer of assets by the assessee, in view of the apex Court's decision in CIT vs. Prem Bhai Parekh (1970) 77 ITR 27 (SC). None of such facts exists here and hence s. 64(1A) is incorrectly adhered to by the AO. Rather on the available facts of the case, the provisions of s. 64(2) are invokable at the most, as the three minor children own the agricultural property as the separate property as individuals. However, since other conditio....
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....nt was made as a measure against tax avoidance in the light of recommendations of an Expert Committee, s. 64(1A) of the Act has been inserted in the Finance Act, 1992 w.e.f. 1st April, 1993 which reads as under:- "(1A) In computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child not being a minor child suffering from any disability of the nature specified in s. 80U:- Provided that nothing contained in this sub-section shall apply in respect of such income as arises or accrues to the minor child on account of any:- (a) manual work done by him; or (b) activity involving application of his skill, talent or specialised knowledge and exper....