Appeals against income tax assessments on interest on enhanced land acquisition compensation were dismissed, relying on binding circular instructions that preclude appeals where the tax effect falls below the prescribed limit.
No allowance made; appeals dismissed with no costs.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
TAX APPEAL NO.13 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.6 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.7 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
ta13.06
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VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.8 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.9 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
ta13.06
3
TAX APPEAL NO.10 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.11 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
WITH
TAX APPEAL NO.12 OF 2006
The Commissioner of Income Tax-II,
Kendriya Rajaswa Bhavan, Gadkari Chowk,
Old Agra Road, Nashik-422002.
...APPELLANT
VERSUS
Shri Ramsing Ishram Pawar,
R/o- and Post at Jinshi,
Tq-Raver, Dist-Jalgaon.
...RESPONDENT
ta13.06
4
...
Mr.Alok Sharma, Standing Counsel for Appellant.
None present for Respondent.
...
CORAM: S.V. GANGAPURWALA AND
A.I.S. CHEEMA, JJ.
DATE : 23RD MARCH, 2015
ORDER :
1.In all these Appeals, Mr. Sharma, the
learned counsel submits that the Tribunal has
committed error in holding that the interest on
the enhanced compensation amount in proceedings
arising under the Land Acquisition Act is not
taxable. The learned counsel submits that the same
is taxable. The learned counsel relies on the
Judgment of the Apex Court in the case of Bikram
Singh vs. Land Acquisition Collector, reported in
1996-EQ(S.C.)-0-1408.
2.The contention of Mr. Sharma, the learned
counsel that interest on enhanced amount of
compensation in proceedings under the Land
ta13.06
5
Acquisition Act is taxable, is settled proposition
in view of the Judgment of the Hon'ble Supreme
Court in the case of Bikram Singh vs. Land
Acquisition Collector, referred supra. However,
the Respondent relies on the Circular i.e.
Instruction No.1979 dated 27th March 2000, which
states that the Department should not file Appeals
before the High Court when the tax effect is below
Rs.2,00,000/-(Rupees Two Lakh).
3.Mr. Sharma, learned counsel for Appellant
submits that if it is pertaining to question of
law, the same can be raised and the Circular will
not come in the way. The counsel submits that in
such a case the Circular would not apply.
4.The Division Bench of this Court in a
case of Commissioner of Income Tax vs. Zoeb Y.
Topiwala, (2005) 199 C.T.R. (Bom.) 656, has
observed in Para 5 as under:-
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"5. The above instructions dt. 27th March,
2000, reflects the policy decision taken
by the Board not to raise questions of law
where the tax effect is less than the
amount prescribed in the instructions with
a view to reduce litigations before High
Courts and Supreme Court. The circular is
binding on the Revenue. There is no
justification to proceed with the appeal
having tax effect less than Rs.7000."
5.In the present matters also the interest
liability is in the range of Rs.61,000/- to
Rs.63,000/-.
6.Even if the matters are considered on
merits, the principle of 'spreading over the
income' will have to be applied as is held by the
Apex Court in the case of Bikram Singh vs. Land
Acquisition Collector, referred supra. If the
principle of 'spreading over the income' is
applied, the amount would not come within the
taxable limits.
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7.Considering the aforesaid aspects of the
matters, all the Appeals are dismissed. No costs.
[A.I.S.CHEEMA,J.] [S.V.GANGAPURWALA,J.]
asb/MAR15
2 issues framed by the court
Whether interest on enhanced compensation under the Land Acquisition Act is taxable.
Whether the Department Instruction Circular No.1979 regarding appeals with low tax effect bars the present appeals.
Colour shows how this judgement treated each authority
Bikram Singh vs. Land Acquisition CollectorRelied on¶1
1996-EQ(S.C.)-0-1408
Commissioner of Income Tax vs. Zoeb Y. TopiwalaReferred¶4
(2005) 199 C.T.R. (Bom.) 656
The Commissioner of Income Tax-II
Shri Ramsing Ishram Pawar
S.V. GANGAPURWALA
A.I.S. CHEEMA
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court