S.RAVINDRA BHAT

1. The present appeals by the revenue are directed against a common order of the Income Tax Appellate Tribunal (ITAT) dated 5th April, 2005 in seven appeals (by the revenue) and cross objections preferred by the assessee. The following questions of law were framed for consideration of this Court:

(i) Whether the ITAT was, in the facts and circumstances of the case, correct in law in quashing the re-assessment order passed by the Assessing Officer under Section 147(1) of the Income Tax Act, 1961?

(ii) Whether the ITAT was correct in law in holding that the excess amount payable to the assessee towards mesne profits/compensation for unauthorized use and occupation of the premises accrued to the assessee only upon the passing of the decree by the Civil Court on 14.10.1998?”

2. The facts necessary for deciding the appeal are that the assessee, a private limited company is engaged in the real estate business and derived rental income from its commercial building a multi-storied complex let out to various tenants. During the financial year, relevant to assessment year 1992-93, the lease agreement of between the assessee and its tenant Oriental Bank of Commerce, wa