COMMISSIONER OF INCOME TAX Vs. HUKAM CHAND

JUDGEMENT

(1.) THIS order shall dispose of a bunch of following nine appeals as according to the learned counsel for the assessee, common questions of law are involved therein : <FRM>JUDGEMENT_1166_TLP&H0_2011s.htm</FRM> However, in order to understand the controversy fully, the facts are being extracted from IT Appeal No. 133 of 2007.

(2.) THIS appeal has been preferred by the Revenue under S. 260A of the IT Act, 1961 (in short "the Act") against the order dt. 28th April, 2006 passed by the Income-tax Appellate Tribunal, Delhi Bench "F", New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 813/Del/1999, relating to the asst. yr. 1987-88. The appeal was admitted on 30th April, 2007 for determination of the following substantial questions of law :

(3.) LEARNED counsel for the Revenue submitted that the CIT(A) as well as the Tribunal while setting aside the order of the AO had adjudicated the matter by relying upon certain documents and calculations which were produced by the assessee before the said appellate authority without affording any opportunity or asking for remand report from the AO. The attention of the Court was drawn to the observations made in para 33 of the order of the Tribunal where it was noted that certain details had been furnished by the assessee to show that notional income from interest had accrued to the assessee for the years in which the assessee had taken the benefit of KVSS. According to the learned counsel, as there was no amount of notional interest under the KVSS during the year the benefit of which was available to the assessee for adjustment in the years in question, the CIT(A) as well as the Tribunal had erred in holding that addition of the amounts as made by the AO would amount to double taxation.