2020 (12) TMI 1244

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s erred both on facts and in law in confirming the addition of Rs. 1,21,03,610/- made by the ld AO on account of interest of enhanced compensation. 3. On the facts and circumstances of the case the ld learned CIT(A) has erred both on facts and in law in confirming the addition, rejecting the contention of the assessee that the amount of Rs. 24207223/- having been received u/s 28 of the Land Acquisition Act, the same is not taxable as not being in the nature of interest as held by the Hon'ble Supreme Court in the case of Ghanshyam HUF 315 ITR 1. 4. The addition has been confirmed by the ld CIT(A) misinterpreting the various judicial pronouncements given by various High Courts." 3. The only issue in this appeal is whether interest received....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on it. The land acquisition Commissioner as per letter dated 8 December 2016 has informed the learned assessing officer according to which the total enhanced comment compensation was Rs. 29,568,978 out of which original compensation was Rs. 5,361,755 and interest was Rs. 24,207,223. The assessee claimed the interest received of Rs. 24,207,223 as exempt u/s 10 (37) of the act. The assessee claimed above exemption on the basis of the decision of the honourable Supreme Court in case of CIT versus Ghanshyam (HUF) 315 ITR 1 . 5. The learned assessing officer held that there is a change in the provisions of the income tax act with effect from 1/4/ 2010 as per finance act 2009 and accordingly in terms of provisions of Section 145A the interest r....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t has introduced the provisions of Section 145A (b) which defines the year of taxability as the year of receipt, irrespective of the method of accounting followed by the assessee with respect to the enhanced compensation and interest on compensation. The provisions of Section 56 (2) also defines head of income as income from other sources for such income. Section 57 (iv) allows deduction of 50% of such income without any proof of such expenditure. The provisions of the sections were introduced to remove an anamoly. At that time the existing provisions of the income tax provided that the income chargeable Under that profits and gains of business or profession or income from other sources shall be computed in accordance with either cash or Me....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... of Movaliya BhikhaBhai Balabhai 70 taxmann.com 45 [388 ITR 343] . Further we are also mindful of the fact that the honourable Punjab and Haryana High Court in the case of Mahenderpal Narang versus CBDT CWP 17971 of 2019 dated 19/2/2020 as well as in case of Puneet Singh V CIT 110 taxmann.com 16 and Manjeet Singh HUF V Union of India 1 37 taxman 116 has decided in favour of revenue. It is a settled law that Statute must be interpreted according to the intention of the legislature and the court should act upon the true intent of the legislation while applying the law and its interpretation. If a statutory provision is open to more than one meaning, the Court has to choose the interpretation which represents the intention of the legislature. ....