2011 (8) TMI 679

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....ra, Judge, Mr.Justice Sanjay Karol, Judge, JJ. For the appellant : M/s. Vinay Kuthiala, Vandana Kuthiala & Vishal Mohan, Advocates   For the respondents : M/s. Vivek Thakur & B.C. Negi, Advocates.   Sanjay Karol, J. (Oral).   These appeals, except appeal No. 41 of 2007 were admitted on the following common substantial questions of law:-   1. Whether on the facts ....

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....such interest was taxable in the year under consideration on the basis of receipt?   2. Facts are not much in dispute. Respondents' land was acquired for a public purpose by the Government. The amount of compensation, inclusive of interest was enhanced by this Court in various appeals filed by various land owners. Such information was obtained by the Assessing Officer, who while assessing ....

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....e year under appeal.   3. That the amount received by the assessee is compensation under sections 23 & 28 of the Land Acquisition Act, 1894 (for short 'the Act'), is not in dispute.   4. The Apex Court in Commissioner of Income Tax vs. Ghanshyam (HUF), [2009] 315 ITR 1 (SC) has held as under:- "To sum up, interest is different from compensation. However, interest paid on the exc....

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....s available in respect of the entire compensation. It was held by the Constitution Bench of the Supreme Court in Sunder v. Union of India - (2001) 7 SCC 211, that "indeed the language of Section 28 does not even remotely refer to market value alone and in terms it talks of compensation or the sum equivalent thereto. Thus, interest awardable under Section 28, would include within its ambit both the....