2020 (2) TMI 716 - AT - Income Tax

Tribunal upholds addition of income based on interest received under Land Acquisition Act

Mohan Rangrao More Versus ITO, Ward-1, Latur

Mohan Rangrao More Versus ITO, Ward-1, Latur - TMI Issues:Appeal against CIT(A)'s order for Assessment Year 2010-11.Analysis:The appeal was filed by the assessee against the order of CIT(A)-2, Aurangabad, for the Assessment Year 2010-11. The assessee, an agriculturist by profession, initially declared Nil income and claimed a TDS refund of Rs. 17,58,097. The case was reopened by the Assessing Officer (AO) under section 148 of the Income-tax Act, 1961, as the assessee did not file a return. The AO completed the assessment by adding Rs. 77,86,805. The CIT(A) upheld the AO's order, leading to the assessee's appeal before the Tribunal, despite a small delay of 12 days, which was condoned after reviewing the Affidavit. The Tribunal considered the issue of interest received under section 28 of the Land Acquisition Act to be taxed under section 56(2)(viii) of the Income-tax Act, 1961. The CIT(A), relying on the Supreme Court's judgment in Bikram Singh Vs. Land Acquisition Collector, upheld the AO's decision. The Tribunal, noting the settled nature of the issue, agreed with the CIT(A) and dismissed the appeal, concluding that there was no need for interference. Consequently, the grounds raised by the assessee were dismissed, and the appeal was rejected.In conclusion, the Tribunal affirmed the CIT(A)'s decision to uphold the AO's addition of income based on interest received under the Land Acquisition Act. The Tribunal found no reason to interfere with the lower authorities' rulings and dismissed the appeal filed by the assessee. The judgment was pronounced on February 13, 2020.