W.P. (C) No. 2113 of 2011. Case: Lopamudra Misra, D/o. Basanta Kumar Misra Vs The Asst. Commissioner of Income Tax and Anr.. High Court of Orissa (India)
| Case Number | W.P. (C) No. 2113 of 2011 |
| Judges | Gopala Gowda and B.N. Mahapatra, JJ. |
| Issue | Income Tax Act, 1961 - Sections 2(24), 4(1), 115(B)(B), 139(9), 140, 142, 143(1), 143(2), 143(3), 154, 208, 234(B), 234(C), 237, 240, 251 and 260(A); Finance Act, 2001 |
| Judgement Date | May 18, 2011 |
| Court | High Court of Orissa (India) |
Judgment:
B.N. Mahapatra, J.
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The prize money of Rs. 25,00,000/-(rupees twenty-five lakhs), which the Petitioner-Lopamudra Misra got by exhibiting her talent in a TV Game Show, i.e., "Kaun Banega Crorepati" having been made taxable by the Income Tax Authorities, she has approached this Court by means of this writ petition praying for quashing of order dated 04.11.2009 (Annexure-1) and directing the Assessing Officer to refund the entire advance tax of Rs. 7,55,550/-along with interest as provided under First Part of Section 140 of the Income Tax Act, 1961( for short, "Act").
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Bereft of unnecessary details, the facts and circumstances giving rise to the present writ petition are that the Petitioner-Assessee is an individual deriving income from running a Cyber Caf-cum-Computer Coaching Centre. She filed return of income showing total income Rs. 16,21,630/-for the assessment year 2001-02. In her return, the Assessee disclosed income from household property, business and other sources. The same was processed under Section 143(1) of the Act. Subsequently, the case of the Assessee was selected for scrutiny and accordingly notice under Section 142 of the Act was served on her. In course of hearing of the assessment case, the Assessee was asked to submit her clarification as to why the award of Rs. 25.00 lakhs from the said TV game show shall not be taxed under Section 115BB of the Act. The contention of the Assessee before the Assessing Officer was that the award of Rs. 25.0 lakhs received by her was not taxable under the Act. Rejecting Assessee's explanation, the Assessing Officer completed the assessment under Section 143(3) of the Act holding that the award received from the said TV game show was taxable under Section 115BB of the Act.
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Aggrieved by the assessment order, the Assessee filed an appeal before the Commissioner of Income Tax (Appeal) [for short, 'CIT(A')] on the ground that the Assessing Officer was not justified in applying the provision of Section 115BB of the Act as amendment to Section 2(24)(ix) where an explanation was added vide Explanation (ii) Finance Act, 2001 came into effect only on 01.04.2002 for the first time "brining the receipt from TV game show" within the definition of "income". Therefore, the Assessee having received the award on 05.11.2000, provisions of Section 115BB and Explanation (ii) to Section 2(24)(ix) of the Act, which came into effect only by the Finance Act, 2001 with effect from 01.04.2002, cannot be made applicable with retrospective effect. Learned CIT(A) accepted the stand of the Assessee taken in respect of the amendment of Section 2(24(ix) of the Act and introduction of explanation (ii) as well as inapplicability of Section 115BB of the Act to the fact situation. However, learned CIT(A) held that receipt of the award from the said TV game show by the Assessee is assessable under the head "income from other sources" and directed the Assessing Officer to determine the quantum of income afresh allowing expenses incurred from such income after affording an opportunity of hearing to the Assessee.
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Being dissatisfied with the order of the learned CIT(A), the Assessee filed Second Appeal before the learned Income Tax Appellate Tribunal (for short, 'ITAT') questioning the finding of the learned CIT(A) that the receipt of income from the said T.V. game show by the Assessee is taxable under the heading "income from other sources" as well as his direction to the Assessing Officer for making fresh determination of quantum of income. The Income Tax Department filed two appeals before the ITAT, one under Section 154 of the Act bearing ITA No. 472/CTK/03 and another bearing ITA No. 359/CTK/03. In ITA No. 359/CTK/03 the Revenue questioned the order of learned CIT (A) who held that Section 115BB and explanation No. (ii) to Section 2 (24)(ix) of the Act are not applicable to the case of the Assessee-Petitioner. Against the said appeal, the Assessee also filed cross objection. The ITAT heard all these appeals along with Cross-objection and disposed of those by a common order dated 05.08.2004. By the said order, Revenue's appeal was allowed and the Assessee's appeal and Cross-objection were dismissed.
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Against that order, Assessee filed appeal under Section 260A of the Act before this Court for adjudication of various questions of law. However, before this Court, the challenge was confined as to whether the receipt of the award by Appellant-Petitioner on 05.11.2000 can be said to be income and exigible to tax under the Act for the assessment year 2001-02 especially when amendment to Section 2(24(ix) was brought into effect from 01.04.2002. This Court quashed the order of the learned ITAT dated 05.08.2004 and remanded all the matters, i.e., Petitioner's appeal, Department's appeal and also Petitioner's cross objection to the Tribunal to consider afresh keeping in view the date of amendment of the relevant statute and in particular the date from which the amendment to the...
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