- (1.) This order shall dispose of two appeals bearing ITA Nos. 267 and 268 of 2005 as according to learned counsel for the parties, the issue involved is identical. For brevity, the facts are being extracted from ITA No. 267 of 2005.
(2.) This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 11.11.2004 (Annexure A-1) passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal") in ITA No. 540(ASR)/1998, for the assessment year 1991- 92. The appeals were admitted by this Court vide order dated 31.1.2006 for determination of the following substantial question of law:- Whether on the facts and in the circumstances of the case, interest under Sections 234-A and 234-B of the Income Tax Act, 1961 was payable by the assessee in respect of assessment year 1991-92
(3.) Briefly stated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee is an individual and had income from interest on bank deposits and agricultural income. He had filed his return of income on 23.8.1989 for the assessment year 1989-90. The land of the assessee was acquired by the Land Acquisition Organization Department (Punjab), Chandigarh on 18.8.1979. Against the said acquisition, the assessee filed an appeal and the compensation awarded by the Land Acquisition Collector was enhanced by the District Judge, Jalandhar and thereafter by this Court vide order dated 18.1.1989. The enhanced amount of compensation of Rs. 11,56,299/- and interest thereon amounting to Rs. 15,78,607/- for the period from 19.5.1982 to 27.10.1991 was received by the assessee in November, 1991 as the Government of Punjab had filed Special Leave Petition against the enhancement in the Supreme Court. The Land Acquisition Collector released the payment in November, 1991 along with interest as per the copy of computation (Annexure A-6). The Land Acquisition Collector also deducted the tax to the tune of Rs. 1,72,861/- at the rate of 11.02% of the total amount of interest. The Assessing Officer vide assessment order dated 15.10.1997 under Section 143(3) of the Act computed and assessed the interest for the relevant previous year at Rs. 1,74,450/-. The Assessing Officer in the assessment order directed for charging of interest under Sections 234A and 234B of the Act. The credit of Tax Deducted at Source (TDS) relating to the interest income for the relevant year was not allowed for calculating interest under Section 234B of the Act. The credit of the TDS including the TDS relevant to that year was allowed in the assessment year 1992-93 and refund was worked out in that assessment year as per demand notice dated 15.10.1997 (Annexure A-7) under Section 156 of the Act. Feeling aggrieved, the assessee filed appeals before the Commissioner of Income Tax (Appeals) [for brevity "the CIT(A)"]. The CIT(A) vide orders dated 4.8.1998 (Annexures A-2 and A-3, respectively) for the assessment years 1986-87 to 1991-92 and for the assessment year 1992-93 dismissed the appeals. Against the orders, Annexures A-2 and A-3, the assessee filed appeals before the Tribunal. The Tribunal vide order dated 11.11.2004 (Annexure A-1) dismissed the appeals. Hence, the instant appeals.;