2008 (4) TMI 304

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.... CM No. 1082-CII of 2008 2. For the reasons stated in the application, delay of 38 days in refiling the appeal is condoned. 3. CM stands disposed of. ITA Nos. 41 to 44 of 2008 4. These appeals under section 260A of the Income-tax Act, 1961 (for short "the Act"), have been filed by the Revenue against the orders passed by the Income-tax Appellate Tribunal, New Delhi, whereby it has been held that the interest on enhanced compensation is taxable when the issue relating to enhanced compensation attains its finality as the same would accrue to the assessee at that time only. 5. The brief facts of the case are that the assessee had received an enhanced compensation and interest on enhanced compensation during the year under cons....

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....uid. The action of the Assessing Officer, therefore, bringing to tax the interest on receipt basis is upheld and confirmed." 7. Aggrieved against this order, the assessee preferred an appeal before the Tribunal. The Tribunal following the order of the Special Bench of the Tribunal in the case of Deputy CIT v. Padam Prakash (HUF) [2007] 288 ITR (AT) 1 (Delhi) ; 104 TTJ 989, decided the issue in favour of the assessee with the following observations: "We have perused the records and considered the matter carefully. There is no dispute that the entire enhanced compensation is pending in dispute before the High Court. The Special Bench of the Tribunal in case of Deputy CIT v. Padam Prakash (HUF) [2007] 288 ITR (AT) 1 (Delhi) has held that....

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....e order of the Tribunal for consideration of this court. "Whether, on the facts and circumstances of the case, the hon'ble Income-tax Appellate Tribunal is right in holding that assessment of interest cannot be made until the matter is finally settled by the High Court, in contradiction with the judgment of hon'ble jurisdictional High Court of Punjab and Haryana following the judgement of the apex court in the case of Rama Bai v. CIT [1990] 181 ITR 400 whereby interest on enhanced compensation is to be taxed on accrual basis irrespective of the pendency of appeal in higher courts in respect of enhanced compensation. [I. T. A. No. 176 of 2005 and I. T. A. No. 177 of 2005 in the cases of CIT v. Naresh Kumar and CIT v. Dilbagh Singh respect....