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CASE NO.: Appeal (civil)  2977 of 2004

PETITIONER: ARVIND SUD

RESPONDENT: UNION OF INDIA & ORS.

DATE OF JUDGMENT: 25/10/2005

BENCH: B.P.SINGH, S.B.SINHA & P.K.BALASUBRAMANYAN

JUDGMENT: J U D G M E N T

                                We have heard counsel for the parties.         It is apparent from our order dated 24th February,  2004 that the only question which remained to be considered  was whether the department has charged interest from the year  1993 or from any later date.  Counsel appearing for the  appellant had then submitted that though the lottery was  declared on 12.11.1993, the prize in the form of a Maruti Car  was delivered to the appellant on 8.11.1994 and tax liability  arose only thereafter. He was liable to pay tax only in the  assessment year 1995-1996 on receipt basis.  Counsel for the  Revenue has produced before us instruction received from the  office of the Chief Commissioner of Income Tax, Ludhiana.  The  letter dated 24.10.2005 clearly states that the interest under  Section 234A, 234B and 234C was not charged from the year 1993  as the consideration received on account of lottery prize was  assessed on receipt basis, and not on the declaration of the  prize.  Thus, there is no doubt that the interest has been  charged on receipt basis and not on the basis of the date of  declaration of the prize.           Counsel for the appellant pointed out that there may  be some error of calculation and in particular, he submitted  that the interest, if any, payable under Section 234B was  payable from December, 1995 and not from any earlier date,  since he received the car as a prize on 8.11.1994.         We do not wish to express any considered opinion on  this question, since it is always open to the appellant to  move the appropriate authority under Section 154 of the Income  Tax Act for appropriate order.           With the above observation, the civil appeal is  dismissed.