TaxTMI 
TaxTMI 
2017 (11) TMI 65
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....19th March, 2012 the Petitioner filed a revised return for AY 2011- 12 seeking refund of Rs. 12,94,962/- on account of TDS deducted by the Land Acquisition Collector ('LAC'). 4. The Petitioner's case was taken up for scrutiny assessment vide notice under Section 143(2) of the Act dated 2nd May, 2013. 5. The Petitioner had claimed that the enhanced compensation of Rs. 64,75,249/- paid by the LAC relating to agricultural land was exempt from tax under Section 10(37) of the Act. 6. The Assessing Officer ('AO') passed the assessment order dated 14th February, 2014 on a total income of Rs. 6,28,376/- making an addition of Rs. 10,800/- on account of interest income. The AO accepted the claim of the Petitioner that enhanced compensation of Rs. 64,75,249/- was exempted under Section 10(37) of the Act. 7. As noticed above, the aforesaid assessment has now been made subject matter of the reassessment proceedings vide notice under Section 148 of the Act dated 24th September, 2015 which is the subject matter of the challenge before this Court. 8. In order to decide the aforesaid challenge, we would like to reproduce the reasons recorded by the AO for reopening of the assessment,....
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....tion of interest on enhanced compensation received by the assesee for A.Y. 2011-12 as per TDS statement receipt from Land Acquisition Office, Panchkula shown in the revised return filed by said assesee. Then Assessing Officer omitted to consider taxability of interest on enhanced compensation of Rs. 80,02,471/- in the hands of said assessee for A.Y. 2011-12 as per Section 56 (2)(viii) of the Income tax Act, 1961, in the assessment made on 14.02.2014 u/s 143(3) of Income Tax Act, 1961. Since, such interest income on enhanced compensation due to land acquisition of Rs. 80,02,471/- was neither offered for taxation by the assessee nor Assessing Officer made any assessment of this amount by omitting such taxation of interest on enhanced compensation, I have reason to believe that income of Rs. 80,02,471/- chargeable to tax in the hands of above said assesee for A.Y. 2011-12 has escaped assessment. Hence I am satisfied that it is a fit case to issue notice u/s 148 of Income Tax Act, 1961 in the said case for the assessment year 2011-12 after taking necessary statutory approval u/s 151(2) r.w.s. u/s 147/148/149 of the Income Tax Act, 1961. After supplying of reasons, you are request....
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....r the Petitioner has not disputed the assertions made by the learned counsel for the respondents, who has drawn our attention to the order sheets. In the order sheet dated 18th April 2013, which refers to interest component, it is pointed out was with reference to the difference between the interest disclosed by the Petitioner in his original return and as per Form 26AS. As noticed above, an addition of Rs. 10,800/- was made by the AO in the assessment order dated 14th February,2014 on this account. This amount of interest is different and distinct from the interest component which formed part of the enhanced compensation. The assessment order also does not mention or record that the Petitioner had received interest which was part of the enhanced compensation. 14. Noticeably, the office note to the assessment order records that the TDS of Rs. 12,94,962/- issued by the LAC, on which the refund has been claimed, was not being taken into consideration as it was not reflected in Form 26AS. This note also mentions that the Petitioner has received enhanced compensation of Rs. 64,75,249/- for compulsory acquisition of agricultural land in Karnal from the Land Acquisition Officer ('L....
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.... interest which is taxable. In particular, our attention is drawn to paragraphs 24, 25, 26, 33 and 35 of the said decision. The aforesaid decision draws a difference between interest which is payable under Section 34 of the Land Acquisition Act, 1894 which would be taxable and interest payable under Section 23 (1A), 23(2) and 28 which as per the Petitioner is not taxable. According to the Petitioner, the interest received, as per the Award, was under Sections 23(1A), 23(2) and 28, and hence would not be taxable. 20. Learned counsel for the Respondents on the other hand submits that the decision in Ghanshyam (HUF) (supra) is dated 16th July, 2009 and the Act has been subsequently amended in the form of enactment of Clause (viii) to sub section 2 to Section 56 read with Clause (b) to Section 145A with effect from 1st April, 2010 by Finance (2) Act, 2009. 21. Learned counsel for the petitioner however has drawn our attention to the judgment of the Supreme Court in Ramabai v. Commissioner of Income Tax, (1990) 181 ITR 400 (SC) and Memorandum/Circular No.5/2010 (F No.142 /13/2010 - SO (TPL) dated 3rd June, 2010 explaining the newly enacted provisions of Clause (viii) inserted to s....