Rakesh Garg, J. - (1.) THE revenue has filed the present appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order dated 27th Sept., 2006 passed by the Tribunal, Delhi Bench "B" in FTA No. 1448/Del/2004 for the assessment year 1997 -98 raising the following substantial questions of law: (i) Whether on the facts and circumstances of the case, the order of Hon'ble Tribunal is perverse in view of the fact that the Hon'ble Tribunal decided the issue on mere presumption without ascertaining the correctness of the plea taken by the assessee regarding availability of funds to the extent of Rs. 4,50,000?. (ii) Whether on the facts and circumstances of the case, the Hon'ble Tribunal is right in holding that assessment of interest cannot be made until the matter is finally settled by the High Court, in contradiction with the judgment of Hon'ble jurisdictional High Court of Punjab & Haryana following the judgment of apex court in the case of Smt Rama Bed v. : [1990]181ITR400(SC) whereby interest on enhanced compensation is to be taxed on accrual basis irrespective of the pendency of appeal in higher Courts in respect of enhanced compensation. (IT Appeal No. 176 of 2005 and IT Appeal No. 177 of 2005 in the cases of CIT v. Naresh Kumar and CIT v. DUbagh Singh, respectively).
(2.) ASSESSMENT proceedings were started on -the basis of an information received by the assessing officer that Shri Rama Nand, husband of Smt. Prem Wati had received huge compensation for acquisition of property amounting to Rs. 83,29,889 (sic) with interest of Rs. 32,30,239. The assessee did not respond to notics. 148 or 142(1) of the Income Tax Act and therefore, the assessing officer completed ex pane assessment of assessee as legal heir of late Sh. Rama Nand on a total income of Rs. 95,92,840 under Section 144 of the Act. Various deposits found in the account of the assessee were treated as unexplained and added in the income of the assessee. Against the assessment order dated 20 -12 -2002, the assessee filed an appeal before the Commissioner (Appeals), Panchkula (for short the (sic) raising legal grounds besides challenging addition on facts and circumstances of. the case. The Commissioner (Appeals) allowed the appeal of the assessee partly vide its order dated 2 -1 -2004.
(3.) STILL aggrieved against the order of the CFT(A), the assessee further filed an appeal before the Tribunal Delhi, Bench 'B', Delhi, challenging the additions amounting to Rs. 49,500, Rs. 4,50.000 and a sum of Rs. 4,10,500 as unexplained income of the assessee. The assessee also challenged addition made on account of interest received on the enhanced compensation. The Tribunal vide its order dated 27 -9 -2006 held that the interest on enhanced compensation received by the assessee was liable to be taxed on accrual basis rather than on receipt basis by following the decision of the Hon'ble Supreme Court in the case of Smt. Rama Bai v. : [1990]181ITR400(SC) . Vide the impugned order, the Tribunal also deleted the addition of an amount of Rs. 49,500 and a sum of Rs. 4,50,000 which were added as unexplained income of the assessee.;