Case Law Details
Smt. Sharda Pareek Vs ITO (ITAT Jaipur)
Conclusion: AO was directed to wait in respect of tax ability of interest income received from the insurance company on MACT claim till the Supreme Court pronounce a judgement in Sharda Pareek v. Assistant Commissioner of Income Tax & another as the same issue was pending before the Court.
Held:
AO who completed the assessment u/s 143(3) wherein the interest income received from the insurance company on MACT claim amounting to Rs. 13,80,216/- was brought to tax. Assessee claimed that the payment of interest received by assessee could not be taxed pending finalisation of the dispute regarding accident insurance compensation on which the said interest was granted. However, AO rejected the contention on the ground that the said interest income had already been credited in favour of assessee and TDS had been deducted. It was held the question relating to taxability of interest on compensation awarded by the Motor Accident Claims Tribunal was identical to the question of law framed for adjudication before the Hon’ble Supreme Court in assessee’s own case. Therefore, the claim of the assessee in terms of section 158A(3) was admitted. Given that the matter was currently pending adjudication before Supreme Court, AO was directed to apply the directions of the Hon’ble Supreme Court as soon as the same was pronounced in the present case. The matter was accordingly set-aside to the file of AO with the above directions.
FULL TEXT OF THE ITAT JUDGEMENT
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