TaxTMI 
TaxTMI 
2016 (2) TMI 1087
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....anchkula all dated 29.1.2015 for assessment year 2010-11. The appeals before the CIT (Appeals) were against the order of the Assessing Officer made under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (in short 'the Act'). 2. Since the facts and circumstances are identical in all the appeals, the same were heard together and are being disposed off by this consolidated order for the sake of convenience. The decision given in the case of Baldev Singh in ITA No.313/Chd/2015 shall apply mutatis mutandis to all the appeals. ITA No.313/Chd/2015 : 2. Ground Nos.1 and 7 are general. 3. The learned counsel for the assessee preferred not to press ground No.6. Therefore, the same is dismissed as not being pressed. 4. Ground Nos.3....
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....District. Judge, Panchkula. The assessee challenged the award before the Addl. District Judge, Panchkula and the learned Addl. District Judge, Panchkula enhanced the compensation, which was challenged by HUDA before the Hon'ble Punjab & Haryana High Court and since the same is pending before the High Court, it should not be taxed in view of amended provisions of section 45(5)(b) of the Act, whereby it has been stated that the compensation shall be taxed on finality. Without prejudice, it was submitted that, without appreciating the spirit of the judgment of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) 315 ITR 1 (SC), the Assessing Officer has given exemption under section 10(37) of the Act on compensation and tax....
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....e year under consideration and therefore liable to be taxed in the A.Y. 2010-11 only. This also clarifies that amended section 45(5)(b) will not be effective as the interest has been received in the year under consideration. Further, the new provision has been provided in section 57(iv) of the Act to provide for standard deduction in the case of interest on compensation or on enhanced compensation. A deduction equal to 50% of such income shall be allowed w.e.f. A.Y. 2010-11 and no other deduction will be available. Further, section 56(2)(viii) provides for taxability of interest received on compensation or on enhanced compensation. There is no exception clause to exclude any kind of interest which has been defined in any other statute. Had ....
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....tives of both the parties, perused the findings of the authorities below and considered the material available on record. The undisputed facts are that the assessee has received during the year enhanced compensation on compulsory acquisition of land and interest on such enhanced compensation. This is also undisputed that the interest is received by the assessee under section 28 of the Land Acquisition Act. The Assessing Officer also does not have any quarrel to exempt the principal amount of enhanced compensation under section 10(37) of the Act. The only issue remaining is the taxability of interest on enhanced compensation received by the assessee under section 28 of the Land Acquisition Act. For this, we refer to paras 32 and 33 of the ju....
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....on 45(5) of the 1961 Act refers to compensation. But as discussed hereinabove, we have to go by the provisions of the 1894 Act which awards "interest" both as an accretion in the value of the lands acquired and interest for undue delay. Interest under Section 28 unlike interest under Section 34 is an accretion to the value, hence it is a part of enhanced compensation or consideration which is not the case with interest under Section 34 of the 1894 Act. So also additional amount under Section 23(1A) and solatium under Section 23(2) of the 1961 Act forms part of enhanced compensation under Section 45(5)(b) of the 1961 Act. In fact, what we have stated hereinabove is reinforced by the newly inserted clause (c) in Section 45(5) by the Finance A....