Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
Under-reporting on a first reassessment return attracts penalty, while enhanced misreporting penalty requires proof of a statutory misreporting catego...
ITAT followed HC decision reversing its earlier erroneous ruling that interest on enhanced compensation for agricultural land acquisition was non-taxable. The HC held that ITAT incorrectly applied pre-2010 law, ignoring legislative amendments under Finance (No.2) Act, 2009 effective 2010. The 2010 amendment under sections 145B, 45(5), and 56(2)(viii) constituted conscious legislative departure from earlier position, making interest on both compensation and enhanced compensation taxable as income from other sources. ITAT's reliance on pre-amendment precedent was legally unsustainable given statutory changes. HC answered substantial question of law affirmatively favoring Revenue, holding interest on enhanced compensation exigible to income tax under amended provisions. Revenue's appeal was allowed.
ITAT followed HC decision reversing its earlier erroneous ruling that interest on enhanced compensation for agricultural land acquisition was non-taxable. The HC held that ITAT incorrectly applied pre-2010 law, ignoring legislative amendments under Finance (No.2) Act, 2009 effective 2010. The 2010 amendment under sections 145B, 45(5), and 56(2)(viii) constituted conscious legislative departure from earlier position, making interest on both compensation and enhanced compensation taxable as income from other sources. ITAT's reliance on pre-amendment precedent was legally unsustainable given statutory changes. HC answered substantial question of law affirmatively favoring Revenue, holding interest on enhanced compensation exigible to income tax under amended provisions. Revenue's appeal was allowed.
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