2014 (1) TMI 1320

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....ted against the order dated 29.1.2013 of the ld. CIT(A), Chandigarh. 2 In this appeal the Revenue has raised following grounds: "1 Whether on facts and circumstances the ld. CIT(A) is justified in allowing the appeal, as the appellant assessee had failed to furnish the details of "interest on enhanced compensation" and "interest on delayed payment of compensation", so as to determine the tax....

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.... was claimed as exempt u/s 10(37). On enquiry it was submitted that the said enhanced compensation was received on account of compulsory acquisition of land situated near to Santoshi Mata Mandir, Swastik Vihar, SEcto4 4. Panchkula. On further enquiry it was asked why the interest received amounting to Rs. 21,62,124/- should not be taxed. In response it was submitted that enhanced compensation was ....

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.... the file of Assessing Officer for verification of the components of the interest and then decide the issue in the light of the decision of Hon'ble Supreme Court in case of CIT V. Ghanshyam (HUF) (supra). 6. Both the parties were heard in detail. 7 After considering the rival submissions we find that this issue has been adjudicated by the Hon'ble Supreme Court and discussed regarding various....

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.... case in the matter of payment of interest under section 34." The above makes it clear that interest received u/s 28 of Land Acquisition Act is to be treated as part of the compensation and therefore, is exempt. However, interest u/s 34 is towards delay in payment and therefore, the same is to be taxed. These details are not available before us. W e further find that since the ld. CIT(A) has ad....