TaxTMI 
TaxTMI 
2015 (12) TMI 692
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....;) vide his order dated 29.12.2011 for assessment year 2009-10. 2. Only ground raised by Revenue in this appeal is that Ld. CIT(A) has erred in deleting the addition of Rs. 3,64,64,577/- on account of accrued interest receivable by assessee on unpaid compensation. 3. The Facts of the case are that the assessee was awarded compensation for an amount of Rs. 30,38,71,474.00 along with the interest @12% per annum from the appointed date 30.11.1996 by the Special Commission Constituted under the Act relating to the project for production of 100 MW electricity known as "Kabri Langpi (Lower Barapani) Hydro Electric Project" in the state of Assam and which was confirmed by Hon'ble Guwahati High Court dated 29.03.2004. The assessee maintai....
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....ahati." From the above the AO is found that the stay order was granted on dated 21.4.2005 by the Apex Court subject to the deposit of another sum of Rs. 9 crores by the appellant within 6 weeks otherwise the stay will get vacate automatically. From the order of the AO, it is found that the assessee has received Rs. 9 crores on dated 22/07/2005 which is falling after the expiry of 6 weeks from the date of Apex court order i.e. 21-04-2005. On the basis of above, AO opined that stay granted by Hon'ble Supreme Court stand vacated and automatically and he worked out the interest @ 12% of Rs. 30,38,71,474/- which comes to Rs. 3,64,64,577/- and added the same to the income of assessee. The AO also enquired from the assessee about the presen....
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....nce in the contentions as raised by the appellant. It is clear that the order of the Hon'ble High Court had been stayed by the Hon'ble. The judicial decisions relied upon by the appellant clearly suggest that the various High Courts as well as the Supreme Court has consistently held that the compensation does not become taxable till the matter has reached its finality and the receipt of compensation has become final. The Hon'ble ITAT in the case of Sharda Pareek has also taken the same view in a similar case as that of the appellant. Above all, the case of the appellant is directly covered by the decision of the jurisdictional ITAT in its own case for the assessment year 2004-05. The case of the appellant is also covered by the ....
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....he parties and perused the materials available on record. Ld. DR relied on the order of AO and submitted that subject matter of the dispute has reached to its finality by the order of Apex Court on dated 29.11.2012 and the relevant portion of the order is reproduced below :- "ORDER On November 22, 2012, the following consensus emerged between the learned senior counsel for the parties: i) The appellants shall pay a sum of Rs. 34 crores to respondent No.2 - Bharat Hydro Power Corporation Limited in full and final settlement of their claim which is the subject matter of these appeals" However, on the other hand the Ld. AR relied on the order of Ld. CIT(A) and submitted a paper book containing the pages from 1 to ....
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.... of charging the interest income was a subject matter of litigation. So the entire amount of interest income which has been accrued till the date of finalization of the litigation will be taxed only in relevant assessment year i.e. 2013-14, when the disputed matter has come to its end. We are also relying the order of ITAT Kolkata 'B' Bench in assessee's own case in ITA No.1675/Kol/2011, where the matter was decided in favour of assessee and relevant extract in para-5 of the order reproduced below:- "5.We have heard both the counsel and perused the records. We find that the issue involved in this case is covered in favour of assessee by the decision of this Tribunal in assessee's own case in ITA NO 427/Kol/2011 for ....