LAWS(DLH)-2020-11-40

SKYLAND BUILDERS P LTD Vs. INCOME TAX OFFICER

Decided On November 03, 2020
Skyland Builders P Ltd Appellant
V/S
INCOME TAX OFFICER Respondents

JUDGEMENT

(1.) The present appeal under Section 260A of the Income Tax Act (the Act) has been preferred by the assesse to assail the order dated 19.08.2004 passed by the Income Tax Appellate Tribunal Bench "G", New Delhi (ITAT) in ITA No. 1730/Del/2003 pertaining to the assessment year 1999-2000. By the impugned order, the ITAT has rejected the submission of the appellant/ assesse that the mesne profits received by it constitute capital receipt and, as such, are not taxable as income under the Act.

(2.) The appeal was admitted on 15.04.2005 when the following question of law was framed by the Court for its consideration. "Whether in the facts and circumstances of the case and in law, the ITAT was right in taxing mesne profit and interest on mesne profit received at the discretion/ directions of Hon'ble Civil Court in suit No. 814/90 for unauthorized occupation of immovable property by Indian Overseas Bank, under Section 23(1) of Act"

(3.) The background facts are not in dispute, and have been noticed by the ITAT in the impugned order. Insofar as they are relevant, we reproduce the same hereinunder.