Penalty on interest from enhanced compensation sustained by appellate deletion, as no substantial question of law arose.

Penalty under Section 271(1)(c) relating to interest on enhanced compensation was deleted by the appellate authority and that view was affirmed by the Tribunal. The High Court found no illegality in the Tribunal's order and held that no substantial question of law arose for interference on the facts. The revenue's challenge therefore failed, and the deletion of penalty remained undisturbed.

---

---

Issues: Whether penalty under Section 271(1)(c) of the Income-tax Act, 1961 was justified in respect of interest on enhanced compensation and whether any substantial question of law arose for interference.

Analysis: The assessee had received interest on enhanced compensation after acquisition of agricultural land, and proceedings under Sections 147/148 of the Income-tax Act, 1961 were initiated when the income was not declared. Although the Assessing Officer levied penalty under Section 271(1)(c), the appellate authority deleted the penalty and the Tribunal affirmed that view. The High Court noted that similar appeals had already been dismissed and found no illegality in the Tribunal's order. On the facts, no substantial question of law was made out.

Conclusion: The penalty deletion was sustained and the revenue's appeal failed.

Final Conclusion: The decision confirms that the appellate deletion of penalty stood undisturbed and the revenue was not entitled to further relief.

---