Pre-amendment reassessment limitation bars late notices under the preserved regime, invalidating consequential reassessment for affected earlier asses...
Cash-sales explanations for bank deposits require documentary reconciliation; reassessment notice survived where effective response time was available...
Functional comparability in transfer pricing prevents ad hoc arm's length adjustments where functions, assets, risks and reliable comparables are unes...
Contingency expenses, exempt-income disallowance, and royalty benchmarking: unsupported adjustments were deleted under consistent accounting and trans...
Interest received on enhanced compensation u/s 56(2)(viii) is taxable as income from other sources and not under capital gains. The Punjab & Haryana High Court's decision in Mahender Pal Narang case that interest on compensation is taxable as income from other sources is binding on tax authorities in that jurisdiction. The PCIT rightly relied on this subsequent case law. The 2010 amendment to Sections 56(2)(viii) and 57(iv) was a conscious legislative departure from the earlier position. Interest, whether on compensation or enhanced compensation, is exigible to income tax under income from other sources as per the plain language of these provisions. The Supreme Court's decision in Sham Lal Narula that interest u/s 28 of Land Acquisition Act is not compensation still holds good. The Ghanshyam HUF case is not applicable after the 2010 amendment. The assessment order not following the jurisdictional High Court's binding precedent was erroneous and prejudicial to revenue.
Interest received on enhanced compensation u/s 56(2)(viii) is taxable as income from other sources and not under capital gains. The Punjab & Haryana High Court's decision in Mahender Pal Narang case that interest on compensation is taxable as income from other sources is binding on tax authorities in that jurisdiction. The PCIT rightly relied on this subsequent case law. The 2010 amendment to Sections 56(2)(viii) and 57(iv) was a conscious legislative departure from the earlier position. Interest, whether on compensation or enhanced compensation, is exigible to income tax under income from other sources as per the plain language of these provisions. The Supreme Court's decision in Sham Lal Narula that interest u/s 28 of Land Acquisition Act is not compensation still holds good. The Ghanshyam HUF case is not applicable after the 2010 amendment. The assessment order not following the jurisdictional High Court's binding precedent was erroneous and prejudicial to revenue.
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