Case Law Details
Brief of the Case
ITAT Delhi held In the case of Sh. Haripal Singh vs. ACIT that it is settled legal position that that there is no estoppels in law. If in law an item is not taxable, no amount of admission or misapprehension can make it taxable. The taxability or the authority to impose tax is independent of admission. The Department cannot rely upon any such admission or misapprehension if it is not otherwise taxable. It is always open to an assessee to take the plea that the figure, though shown in his return of total income, is not taxable in law.
Facts of the Case
The assessee is an individual and filed his return of income for the AY 2009-10 on 30.7.2009 declaring an income of Rs.45,86,530/- The case was processed u/s 143(1). Later on, the assessee revised his return of income, declaring a total income of Rs.6,73,55,350/- on 30.9.2009. The reasons for revising the return of income were stated by the assessee that, while filing the original return of income, long term capital gain, amounting to Rs.7,09,00,039/- and a part of income from other sources amounting to Rs.3,90,84,891/- were not declared. Thereafter, the case was selected for scrutiny under CASS and statutory notice u/s 143(2) dated 21.8.2010 was issued and duly served upon the assessee and and assessment was completed u/s 143(3) on 29.12.2011.
The assessee declared a sum of Rs.7,09,00,039/- as capital gain in the assessment year 2009-10. The assessee also declared an interest of Rs.7,81,69,783/- as income from other sources in accordance with amended provisions of section 56(vii) read with section 145A(b). The assessee claimed deduction of 50% against interest income under section 57(v) amounting to Rs.3,90,84,892/-. This was disallowed by the assessing officer as the amendment of section 57(iv) which is made effective only from 01/04/2010 i.e. assessment year 2010-11. The assessing officer assessed the income of the assessee by disallowing the deduction of 50% claimed by the assessee against interest on compensation, by stating that section 57(iv) was introduced by the Finance Act, 2009 w.e.f. 01/04/2010, in view of which the provision was not applicable for the assessment year 2009-10.
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