TaxTMI 
TaxTMI 
TaxTMI 
2010 (9) TMI 342
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....1961 (for short "the Act'") the Income-tax Appellate Tribunal, Amritsar Bench Amritsar, (in short "the Tribunal") vide order dated March 26, 1999, passed in Reference Application No. 142(ASR)/1998 arising out of I. T. A. No. 242(ASR/1992) at the instance of the Revenue, in respect of assessment year 1985-86, has referred the following question of law, for the opinion of this court : "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in not upholding the assessment of enhanced compensation and interest received by the assessee under the general provisions of the Income-tax Act, even if the provisions of the section 45(5)(b) were not specifically applicable ?" 3. In b....
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....eals) accordingly deleted the addition made by the Assessing Officer. So far as the objection raised on behalf of the assessee that notice under section 148 of the Act was invalid, the Commissioner of Income-tax (Appeals) held that the same was not sustainable in law in view of the provisions of section 292B of the Act. 4. The Revenue filed appeal before the Tribunal. The Tribunal also did not agree with the submissions made by the Revenue and accordingly dismissed the appeal vide order datedJuly 30, 1998. 5. We have heard learned counsel for the petitioner and have perused the record. 6. A perusal of the question referred shows that the amount received by the assessee had components of enhanced compensation and also of int....
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....e assessee as enhanced or additional compensation would be taxable as capital gains relating to the year of acquisition/transfer of capital asset, i.e., the assessment year 1972-73 or in the year of receipt, viz. the assessment year 1985-86. 11. Learned counsel for the Revenue referred to the provisions of section 45(5)(b) of the Act read with Explanation (ii) thereto, and in the alternative section 155(7A) of the Act so as to bring the case of the assessee regarding receipt of enhanced compensation chargeable to capital gains tax. 12. We do not find any force in the contention of the learned counsel. 13. Section 45(5)(b) of the Act relates to receipt of additional or enhanced compensation subsequent to the year of acquisit....
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....lved is 1972-73 and further the assessee had not filed any return for the said year which could be rectified. Therefore, the enhanced compensation would not be exigible to tax either in the year of receipt, i.e., the assessment year 1985-86 or in the year of acquisition/ transfer of capital asset i.e., the assessment year 1972-73. 15. Adverting to the second limb regarding interest, it may be noticed that there are two types of interest. One is awarded under section 28 of the Land Acquisition Act, 1894 (in short "1894 Act") and the other is under section 34 of the 1894 Act. In so far as interest under section 28 of the 1894 Act is concerned, the same partakes of the character of compensation and would be governed by the aforesaid pr....