2006 (1) TMI 476

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.... as follows :- "(i )The learned CIT(A) erred on facts and in law in deleting the addition of Rs. 1,09,069 and Rs. 55,980 on account of interest on enhanced compensation; (ii)The learned CIT(A) erred on facts and in law as she failed to appreciate that the Supreme Court judgment did not pertain to interest and related to a period prior to the insertion of section 45(5) by Finance Act, 1991 with effect from 1-4-1988. Since compensation would be taxable on receipt basis in view of the specific provisions of section 45(5) interest would also be taxable." 3. The facts attending this case are that the assessee received enhanced compensation of Rs. 21,35,428 and interest of Rs. 24,34,388, during the previous year 1995-96, for compulsory A....

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....The learned Commissioner (Appeals), by virtue of the impugned common order dated 28-9-2000, held that she agreed that it was premature to tax the disputed interest amount as income of the assessee. Following Hindustan Housing & Land Development Trust Ltd.'s case (supra), the Assessing Officer was directed to await the final decision before the disputed amount would be brought to tax. Aggrieved, the Department is in appeal before us by way of the present three appeals. 6. Before us, the learned DR has not been able to point out any error with the order of the learned Commissioner (Appeals). The case of the Department is that the learned Commissioner (Appeals) has wrongly applied Hindustan Housing & Land Development Trust Ltd.'s case (supr....