2018 (7) TMI 2120

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....hat on the facts and in the circumstances of the case, the ld first appellate authority (CIT(A)-2), Faridabad is erred in:- i. sustaining the addition made of Rs. 146155 on account of enhanced land compensation received by the assessee by not allowing deduction under section 10(37) of the Income Tax Act, 1961. ii. sustaining the additions of Rs. 1740002/- on account of interest received on enhanced compensation." 2. The brief facts of the case is that the assessee is an individual who filed his return of income on 11.09.2009 declaring agricultural income of Rs. 2071828/-. The ld AO noted that the agricultural land of the assessee was acquired by HUDA and the assessee has received compensation as well as interest thereon but same was no....

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....tions are not fulfilled. Therefore, the assessee aggrieved has preferred this appeal before us. 5. The ld AR submitted that assessee has received compensation u/s 28 of the Land Acquisition Act, therefore, same is part of compensation for land acquisition. The interest received is not interest u/s 34 of the Land Acquisition Act. He therefore, submitted that if the interest is u/s 28 of the Land Acquisition Act then assessee is entitled to deduction u/s 10(37) of the Act. To support his contention he referred to the letter dated 26.07.2011 by the ld AO as well as certificate of Govt of Haryana. He therefore, submitted that the order of the ld CIT(A) is erroneous. 6. The ld DR relied upon the orders of the lower authorities. 7. We have car....

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....ng is devoid of any evidence. Therefore, the order of the ld CIT(A) cannot be upheld. 8. As the assessee has received the compensation u/s 28 of the Land Acquisition Act same is part of the compensation received by the assessee which is chargeable to tax under the head capital gain u/s 45(5) of the Act. 9. Further, section 10(37) of the Act provides that if any sum is chargeable to tax under the head capital gain arising from the transfer of agricultural land in case of assessee in pursuance of compulsory acquisition, then same is exempt subject to certain conditions. In the case of the assessee the ld AO himself has stated that the assessee is entitled to deduction u/s 10(37) of the Act and sum of the compensation received by it as the l....