TaxTMI 
TaxTMI 
2005 (5) TMI 28
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....kanals 12 marlas and 1 kanal 12 marlas in the Revenue Estate of Village Balahgarh, District Gurgaon, was acquired by the State and possession thereof taken on October 21, 1966. The Land Acquisition Collector gave the award on October 21, 1966. The petitioner applied for a reference under section 18 of the Land Acquisition Act and, ultimately, the matter came up to the High Court which, vide order dated June 1, 1977, enhanced the compensation. Letters Patent Appeal filed by the State was also dismissed vide order dated March 20, 1979. As a consequence thereof, the assessee was paid enhanced compensation amounting to Rs. 14,64,006. A further sum of Rs. 10,30,320 was paid to him as interest for the period October 21, 1966, to June 30, 1979. ....
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.... pointed out that the amount of interest received by him during the accounting period relevant to the assessment year 1980-81 was Rs. 10,30,320 and Rs. 80,966.50 whereas the Assessing Officer had included a sum of Rs. 12,57,753. He further pleaded that even the aforesaid two amounts were not taxable as the same were in the nature of damages for depriving the owner of the usufructus of agricultural land and, thus, represented agricultural income and not interest. In the alternative, it was pleaded that even if the said amount was to be treated as interest, the entire amount could not be assessed in the assessment year 1980-81 in view of the judgment of this court in CIT v. Dr. Sham Lal Narula [1972] 84 ITR 625, in which it has been held that....
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....ssessment years, i.e., the assessment years 1967-68 to 1979-80. Simultaneously, the Revenue also preferred an appeal before the Tribunal against the order of the Commissioner of Income-tax (Appeals), which was dismissed vide order dated January 19, 1985. Thereafter, at the instance of the Revenue, the Tribunal referred this issue for the opinion of this court under section 256(1) of the Act, in I.T.R. No. 55 of 1985. The said petition was also decided against the Revenue vide order dated August 10, 2004. It is in the above factual background that the validity of the proceedings under section 147 of the Act initiated by the impugned notices, has to be determined. According to the assessee, no proceedings could be initiated under cla....
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....ad brought to tax capital gains arising on the compensation received by the assessee in the assessment year 1978-79. On appeal, the Commissioner of Income-tax (Appeals) annulled the assessment on the ground that the same was assessable in the year in which possession of the land was taken by the State Government, i.e., November 5, 1976, and not in the assessment year 1978-79. The Revenue's appeal before the Tribunal on this ground also failed. The Tribunal observed that since the possession had been taken over on November 5, 1976, the capital gains was assessable in the assessment year 1977-78 and not in the assessment year 1978-79. On the basis of the observations recorded by the appellate authority, the Assessing Officer issued notice und....
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....rward by Shri A.K. Mittal is that under sub-section (2) of section 150 of the Act, there is a bar of limitation and, in view of that bar, issuance of notice under section 148 by the Assessing Officer on March 1, 1996, was beyond the period of limitation. Sub-section (2) of section 150 lays down an exception and, where such an exception exists, the provisions of sub-section (1) would not be applicable. Sub-section (1) of section 150 shall not apply where the notice for reassessment for an assessment year had become barred by limitation at the time when the order, which was the subject-matter of appeal, revision or reference, was passed. Generally, the time limits prescribed in section 149 shall not apply where reassessment proceedings are....
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.... In the present case, a finding has been recorded by the Commissioner of Income-tax (Appeals) in his order dated January 16, 1984, that the entire interest received by the assessee during the accounting period relevant to the assessment year 1980-81, was not assessable in that year as the same was assessable on accrual basis from year to year. Thus, the interest pertaining to the earlier years was excluded. This finding was, thus, a finding as envisaged in sub-section (1) of section 150 read with Explanation 2 below section 153(3) of the Act. However, the question of limitation has also to be considered. In the present case, the assessment order which was the subject-matter of appeal before the Commissioner of Income-tax (Appeals) for t....