TaxTMI 
TaxTMI 
2016 (9) TMI 1186
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....rejecting the contention of the appellant that in the absence of any new information post-filing return, the AO cannot reopen the assessment. 4. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 13,91,426/- being the interest received on enhanced compensation. 5. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in considering the return filed for earlier assessment years before AO as additional evidences under Rule 46A. 6. On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in rejecting to take into consideration the revised returns filed for earlier assessment years which clearly demonstrate that the interest income has been duly accounted for in the year to which it pertains and hence the addition made in the year under consideration is unsustainable. 7(i) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in holding that the entire amount of the interest of Rs. 13,91,426/- pertains to the year under consideration ignoring t....
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....9.2004 2001-02 3,46,550/- (u/s 143(1) dt.24.12.2003 87,024/- 4,33,574/- 30.09.2004 2000-01 3,29,760/- (u/s 154 on 24.12.03) 87,024/- 4,16,784/- 30.09.2004. 2.3 For the year under consideration, the assessee had claimed the TDS deducted on the enhanced compensation received in the return of income filed. The Assessing Officer initiated proceedings u/s 148, alleging that interest on enhanced compensation amounting to Rs. 13,91,427/- received by the assessee from Land Acquisition Officer in November, 2003 has escaped assessment. 2.4 The assessee contended before the Ld. A.O. that he had already revised its return of income for the earlier years by spreading over the interest as per the judgment of Hon'ble Punjab & Haryana High Court in the case of Tuhiram Vs Land Acquisition Collector and others reported in 199 ITR 490 (being the Jurisdictional High Court in case of the assessee). 2.5 The reason for the issuance of notice u/s 148 of the I.T. Act, 1961 as recorded by the Assessing Officer is as under: "Reasons for Issue of Notice u/s 148 of the Income tax Act. 1961: The assessee filed return of income on 30/9/2004, ....
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....submitted that interest paid on excess amount u/s 28 of the Land Acquisition Act, 1894 depends upon the claim of person whose land has been acquired, whereas interest u/s 34 is for delay in making the payment, for which compensation amount is determined. Ld. A.R. submitted that admittedly, the alleged interest received is the payment of interest u/s 34 of the Land Acquisition Act 1894. Ld. A.R. submitted that the assessee revised its return for earlier years when the payment was received. He submitted that the enhanced interest received does not pertain to the financial year relevant to Assessment Year under consideration. It pertained to the period from effective date of compensation to the actual date of decision of the Court. He referred to and relied upon the decision of Hon'ble Jurisdictional High Court in the case of Tuhiram Vs Land Acquisition Collector and others (supra), wherein the Hon'ble Punjab & Haryana High Court had mandatorily required the spread over of income on year to year basis and to pay the tax accordingly. In these circumstances, it has been submitted by the Ld. A.R. that the assessee could not file his return reflecting the total interest income in ....
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....nt unless the authority proceeds to give notice under section 143(2) and passes an order under section 143(3). Furthermore, if the competent authority has reason to believe that income had escaped assessment while issuing intimation under section 143(1), it can proceed under section 148. The absence of order under section 143(3) is no bar and finally the Hon'ble Court in this case concluded as under:- "It is not necessary for reopening' under section 147 that assessment should have been finalized under section 143(3) once the assessment for the relevant year was admittedly completed vide an intimation under section 143(1) the notice under section 147/148 issued to the petitioner was not vitiated merely for the reason that notice under section 143(2) had not been issued to it." 4.04 The Hon'ble Punjab& Haryana High Court further considered this issue in the case of Ramesh Chander Singla Vs. CIT(A) 2 ANR (2011) 330 ITR 28S (P&H) . The catch note from that decision is reproduced be1ow:- "The assessee, a Development Officer of the LIC claimed deduction on incentive bonus and additional conveyance allowance received by him. The return of the assess....
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....isdiction of Assessing Officer-Income-Tax Act, 1961; ss, 36(1)(vii), (2), 1.43(1 )(a), 147, 148." 4.07 In view of the factual and legal position discussed above, the plea of the appellant is not tenable and in view of the decision of the Hon'ble Jurisdictional Punjab & Haryana High Court on the issue; the issue of notice u/s 148 'of the Act by the AO is held as per law and grounds' no. 1 & of appeal are as such dismissed." 6.3 We do not find any infirmity in the findings of Ld. CIT(A). Respectfully following the ratio laid down in the decisions above, we dismiss these grounds raised by assessee. 6.4 The issue raised under Ground No.4 to 8 argued before us is regarding taxability of a sum of Rs. 13,91,472/- received by the assessee in the year relevant to the assessment year under consideration, which admittedly pertains to more than fifteen earlier years as discussed above. The assessee revised his returns for the three years and offered the amount of interest relating to those years to tax. The remaining amount relating to the earlier years was not offered as the time limit for revising the returns or rectifying the assessments had already expired. The A....