Full Judgment Text
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CASE NO.:
Appeal (civil) 2977 of 2004
PETITIONER:
ARVIND SUD
RESPONDENT:
UNION OF INDIA & ORS.
DATE OF JUDGMENT: 25/10/2005
BENCH:
B.P.SINGH, S.B.SINHA & P.K.BALASUBRAMANYAN
JUDGMENT:
J U D G M E N T
We have heard counsel for the parties.
It is apparent from our order dated 24th February,
2004 that the only question which remained to be considered
was whether the department has charged interest from the year
1993 or from any later date. Counsel appearing for the
appellant had then submitted that though the lottery was
declared on 12.11.1993, the prize in the form of a Maruti Car
was delivered to the appellant on 8.11.1994 and tax liability
arose only thereafter. He was liable to pay tax only in the
assessment year 1995-1996 on receipt basis. Counsel for the
Revenue has produced before us instruction received from the
office of the Chief Commissioner of Income Tax, Ludhiana. The
letter dated 24.10.2005 clearly states that the interest under
Section 234A, 234B and 234C was not charged from the year 1993
as the consideration received on account of lottery prize was
assessed on receipt basis, and not on the declaration of the
prize. Thus, there is no doubt that the interest has been
charged on receipt basis and not on the basis of the date of
declaration of the prize.
Counsel for the appellant pointed out that there may
be some error of calculation and in particular, he submitted
that the interest, if any, payable under Section 234B was
payable from December, 1995 and not from any earlier date,
since he received the car as a prize on 8.11.1994.
We do not wish to express any considered opinion on
this question, since it is always open to the appellant to
move the appropriate authority under Section 154 of the Income
Tax Act for appropriate order.
With the above observation, the civil appeal is
dismissed.