Commissioner of Income Tax vs Jai Bhagwan

M.M. Kumar, J.—This is revenue''s appeal filed u/s 260A of the Income Tax Act, 1961 (for brevity ''the Act'') challenging order dated 3-10-2008 passed by the Income Tax Appellate Tribunal, Delhi Bench ''D'', New Delhi in ITA No. 2186/Delhi/2008, in respect of assessment year 2002-03. The appellant-revenue has sought to raise the following substantial questions of law for determination of this Court:

Whether, on the facts and circumstances of the case, the ld. ITAT is right in holding that the capital gain cannot be charged on the basis of year of receipt of the enhanced compensation, if the matter is subjudice?

Whether in law it is still an open question that the compensation and/or enhanced compensation would be taxable only when it attained finality irrespective of the remedial provisions introduced in the Act from 1-4-2004 by insertion of Sub-clause (c) of Sub-section (5) of Section 45 read with Sub-section (16) of Section 155 and there is no more doubt that if the compensation and/or enhanced compensation is subsequently reduced, it would be assessed accordingly under these provisions?

Whether, on the facts and circumstances of the case, the ld. ITAT was right in holding that if the litigation regarding quantum of additional compensation was pending before a Court and had not attained finality, interest on enhanced compensation would not accrue and could be subjected to tax only when the issue of enhanced compensation is finally settled?

Whether in law it is an open question that the interest and/or enhanced interest would be taxable only when it attained finality irrespective of the remedial provisions of Section 154 and when there is no doubt that if the interest is reduced or increased, it would be rectified accordingly under these provisions.

It has not been disputed before us that the matter is covered by a judgment of Hon''ble the Supreme Court rendered in the case titled as Commissioner of Income Tax, Faridabad Vs. Ghanshyam (HUF), against the assessee and in favour of the Revenue. Accordingly, order passed by the Tribunal based on the judgment of this Court rendered in the case titled as Chandi Ram v. CIT [2008] 217 CTR 113 : 168 Taxman 315 is hereby set aside and the matter is remanded back for decision afresh on the other issue as the Tribunal has not decided those issues on account of the applicability of the judgment of this Court in Chandi Ram''s case (supra).

Disposed of accordingly.