TaxTMI 
TaxTMI 
2021 (6) TMI 774
X X X X Extracts X X X X
X X X X Extracts X X X X
...., ('the Tribunal' for brevity) in ITA.Nos.759, 760 & 761/Mds/2013 for the assessment years 1991-92, 1992-93 and 1993-94. 2. The Assessee (respondent) is an individual and Proprietor of M/s.Chandrakala & Co., a Stock Broker registered with the Madras Stock Exchange. During the assessment years 1991-92, 1992-93 and 1993-94, the Assessing Officer disallowed the payments made by the assessee to Public Sector Undertakings. On an appeal, the Income Tax Appellate Tribunal vide its order in ITA.No.s.2585/94 and 255 & 2297/Mds/96 dated 05.01.2005 confirmed the additions made by the Assessing Officer. Thereafter, the Assessing Officer initiated penalty proceedings and levied minimum penalties of Rs. 8,25,32,755/-, Rs. 1,40,55,563/- and Rs. 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....minathan, learned Senior Standing counsel assisted by learned counsel Mrs.V.Pushpa, and Mr.M.P. Senthil Kumar, learned counsel for the respondent/assessee. 6. Counsels on both sides contended that the Hon'ble Supreme Court dismissed the appeals filed by the revenue and the observations and conclusion of the Hon'ble Supreme Court in Civil Appeal No.4341 of 2018 arising out of Special Leave Petition (c ) No.22112 of 20123 are extracted hereunder: "10) The answer to the short question whether the alleged interest payable to the PSUs can be assessed as an income of the Respondent depends on the determination of true nature of relationship between the Indian Bank and the Respondent with regard to the transactions in question and the c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ery much settled that an agreement need not be in writing but can be oral also and the same can be inferred from the conduct of the parties. 12) Further, while considering the claim of the Respondent and the view of the Assessing Officer, how the bank itself had treated the Respondent, is a matter of relevance. At the outset, learned counsel appearing on behalf of the Revenue contended that the proceedings under the Income Tax Act are independent proceedings and the High Court committed a grave error in relying on the findings of the criminal Court. We do not find any force in the contention of the appellant herein as the High Court has not held that the findings of the criminal court are binding on the Revenue authorities. Rather the Hig....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red picture about the capacity of the Respondent in holding the amount in question. Consequently, the conduct of the parties, as is recorded in the criminal proceedings showing the receipt of amount by the broker, the purpose of receipt and the demand drafts taken by the broker at the instance of the bank are sufficient to prove the fact that the Respondent acted as a broker to the Bank and, hence, the additional interest payable to the PSUs could not be held to be his property or income. 13) The income that has actually accrued to the Respondent is taxable. What income has really occurred to be decided, not by reference to physical receipt of income, but by the receipt of income in reality. Given the fact that the Respondent had acted ....