- (1.) This appeal under section 60-A of the Income Tax Act has been filed against the judgment and order dated 21.07.2004 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A.No.463/LUC/03 for the assessment year 1999-2000.
(2.) This Court vide order dated 10.02.2005 has admitted the appeal on the following substantial questions of law: (i) Whether in light of Ratio of the judgment passed by Apex Court in Cit Vs. Govind Chaudhary and sons, 1993 203 ITR 881 to that effect that: "If the amounts under a contract were not paid at the proper time and interest was awarded to the respondent for such delay, the interest was only an accretion to the respondent's receipts from the contract and was attributable to and incidental to the business carried on by it" the learned court below was justified in reaffirming the award receipts as compensatory in nature and in adding the same as income from other sources for taxable purpose? (ii) Whether the learned court below was justified in upholding and reaffirming the reopening of assessment under Section 147 of the Act? (iii) Whether the learned court below was justified in upholding and confirming the non-application of the provisions of Sections 152 (2) and 44 AD of the Act?
(3.) The brief facts of the case are that the appellant-assessee is a Civil Contractor. In respect of a contract executed during 1986 to 1989, there was a dispute between the appellant-assessee and Lucknow Development Authority. Finally, the dispute was referred to an Arbitrator by the Court. On 22.12.1999, the sole Arbitrator made an award of Rs.12.65 lakhs along with interest at the rate of 6%, which was also upheld by this Court.;