TaxTMI 
TaxTMI 
2019 (3) TMI 1538
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.... on MACT claim amounting to Rs. 13,80,216/- was brought to tax by the Assessing Officer thereby assessing the income at Rs. 15,19,186/-. The contention of the assessee, that the payment of interest received by the assessee cannot be taxed pending finalization of the dispute regarding accident insurance compensation on which the said interest was granted, was not accepted by the Assessing Officer for the reason that the said interest income has already been credited in favour of the assessee and TDS has been deducted therefrom. Being aggrieved, the assessee carried the matter in appeal before the ld. CIT(A) who following the decision of the Co-ordinate Bench for AY 2006-07 held that the interest received on account of delay in compensation i....
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....d by the assessee and directing the same to be refunded." 4. At the outset, the ld AR on behalf of the assessee submitted that similar questions of law are pending for adjudication before Hon'ble Supreme Court of India in Special Leave to Appeal (C) Nos. 20629- 20631/2017 titled as Sharda Pareek vs. Assistant Commissioner of Income Tax & another. The said Special Leave to Appeal related to Assessment Year 2006-07 and Assessment Year 2007-08. The following questions of law are framed in the said Special Leave to Appeal:- A) Whether, in the facts and circumstances, the High Court wrongly held Motor Accident Compensation as "received" and hence, "Capital" and interest on "Capital" as taxable because, no compensation has yet been paid as in....
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....me Tax & Another and stayed the operation and effect of the impugned judgment dated 26.04.2017 passed by Hon'ble Rajasthan High Court. 6. The ld AR submitted that the questions of law in the present Appeal and the questions of law pending before Hon'ble Supreme Court in the aforesaid Special Leave to Appeal are identical and the same. It was submitted that the Appellant hereby agrees that final decision of aforesaid Special Leave to Appeal would be made applicable in the present Appeal and she will not raise further such question of law in the present Appeal before any Appellate authority. Therefore the present Appeal be kept in abeyance till final adjudication by Hon'ble Supreme Court in the said Special Leave to Appeal. It was accordingl....
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....mpensation awarded by the Motor Accident Claims Tribunal payable to the claimants on the death of victim falls within the ambit of interest within the meaning of Section 2(28A) of the Income Tax Act, 1961 and can be subjected to tax?" The Hon'ble Rajasthan High Court vide its combined order dated 26.04.2017 in DBIT Appeal No. 156/2012, DBIT Appeal No. 162/2012 & 199/2015 held that on plain reading of Section 2(28A), it is very clear that originally compensation was received by the claimant was not income but once amount received, it has become capital and interest on capital is liable to be taxable. Further, the Hon'ble Supreme Court of India in SLP No. 20629- 20631 of 2017 filed by the assessee against the common order dated 26.04.20....
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....ase in appeal before any appellate authority or for a reference before the High Court under section 256 or the Supreme Court under section 257 or in appeal before the Supreme Court under section 261 (2) Where a declaration under sub- section (1) is furnished to any appellate authority, the appellate authority shall call for a report from the Assessing Officer on the correctness of the claim made by the assessee and, where the Assessing Officer makes a request to the appellate authority to give him an opportunity of being heard in the matter, the appellate authority shall allow him such opportunity. (3) The Assessing Officer or the appellate authority, as the case may be, may, by order in writing,- (i) admit the claim of the assesse....