2020 (3) TMI 1327

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....ion Act is a capital receipt. Hon'ble Apex Court in the case of CIT Vs Ghanshyam HUF(2009) 315 ITR 1 has held that Interest awarded u/s 28 of Land Acquisition Act, 1894 is nothing but an accretion to the value of compensation and hence it is part and parcel of compensation. Thus taxability of such interest is of Capital nature an d should be included to Consideration received for the purpose of computation of capital gain u/s 45 of Income Tax Act, 1961.Hence, addition made of Rs. 32,14,916/- be deleted. 2. This clearly implies, as is the settled law, that a capital receipt, unless specifically taxable under section 45 under the head Capital Gain, in principle, is outside the scope of income chargeable to tax and a receipt cannot be taxed....

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....me within meaning of sec 2(24) of the Income Tax Act. The addition made be deleted. 6. The appeal may be modified at the time of hearing." 3. The return declaring in income of Rs. 6,716/- and agricultural income of Rs. 87,500/- was filed on 24/07/2014 by the assessee. The Assessing Officer observed that the assessee received enhanced compensation of Rs. 42,88,140/- and interest of Rs. 64,29,833/- from Haryana State Cooperative Supply and Marketing Federation Ltd. and, therefore, claimed the said as exempt u/s 10(37) of the Income Tax Act, 1961. In view of the decision of Hon'ble Supreme Court in CIT(A) Vs. Ghanshyam (HUF) 315 ITR 1 stating that the interest awaited on enhanced compensation u/s 28 of the acquisition proceedings is ....