TaxTMI 
TaxTMI 
2020 (10) TMI 1360
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....ice u/s. 148 of the I T Act, 1961 to the appellant assessee. Hence, the impugned order is illegal, arbitrary, beyond jurisdiction and against the principles of natural justice. 2. THAT in the present case the amount of statutory interest on late payment of enhanced compensation was paid u/s. 34 of the L A Act, 1894, hence, it was assessable under the head 'Income From Other Sources' and not as a part of enhanced compensation under the head 'Long Term Capital Gains' as done in the impugned assessment order. Judgment dated 16/07/2009 in the case of GHANSHYAM - [2009] 315 ITR 1 [SUPREME COURT] 3. THAT without prejudice to the above, the entire interest amount being not earned in the previous year corresponding to the pres....
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.... Assessment order u/s 144 of the Act was passed on 20.11.2007 u/s 144 of the Act determining total income of the assessee at Rs. 15147430/-. The assessee preferred an appeal before the ld CIT(A), who allowed the appeal of the assessee on 25.08.2008 holding that addition on account of enhanced compensation and interest shall only be taxable when they are finally settled by the Hon'ble High Court or Supreme Courts. Revenue approached the coordinate bench who directed the ld AO to decide the issue afresh by following the decision of the Hon'ble Supreme Court in case of CIT Vs. Ghanshyan Das (HUF) 315 ITR 1. The coordinate bench also directed the ld AO to give opportunity of hearing. Thus, this is the second round before us. 4. As per the dire....
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....mpensation Rs.89,70,358/- 06-09-1999 558/97 Interest enhanced Rs.61,11,073/- 17-09-1999 339/97 Compensation 27/09/1999 340/97 Total Rs.1,50,81,431/- (4.1) The agriculture land belonging to the assessee which was acquired by the HUDA located in Village-Fatehpur Chandela, Faridabad fall within the Municipal Corporation Area liable to Capital Cain Tax and therefore it is a capital assets within the meaning of section 2(14) of the I T Act 1961. Hence assessee is liable to capital gain tax u/s 45(5) of the I T Act. The provisions of sub-section (5) of section 45 of the Income tax Act were inserted by the Finance Act, 1987 with effect from 1-4-1988 which reads as under:- "Notwithstanding anything contained ....
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....and is taxable in the year of receipt." In the light of the legal position discussed above, it is held that total consideration of Rs.89,70,358/- received by the assessee in the form of enhanced compensation shall be charged to long term capital gain tax in the year of receipts i.e. in the A Y 2000-01 and assessed accordingly. 5. Interest received on enhanced compensation As per information available, assessee also received interest of Rs. 61,11,073/- during the year under consideration from LAO on account of interest on enhanced compensation. Assessee was asked vide show cause to explain under which section the interest on enhanced compensation was received. Assessee fails to file any reply in this regard. Information was called for u/....
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.... gain as discussed above(para 5) Rs. 61.11,073/- Total Income Rs.1,50,81,431/- Or R/o Rs.1,50,81,430/- Assessed at Rs.15,081,430/- (long term capital gain). Charge interest u/s 234A/B. The penalty proceedings 271(l)(b) and 271(l)(c) have been initiated separately. Assessed. Issue requisite documents." 5. Thus, the ld AO assessed the total income of Rs. 15081430/-. The assessee preferred an appeal before the ld CIT (A) challenging the action of the ld AO u/s 148 of the Act, which was dismissed. However he, held that amount of consideration received in the impugned land is Rs. 42255187/- and share of the assessee is only Rs. 1/4th therefore, the addition cannot be made more than Rs. 10563797/-. With respect to interest on late paym....
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....ee. Secondly, notice was sent through speed post which is not received back by the AO. Thirdly through fixtures on 30.03.2007. Same is also not disputed by the assessee. There is no reason given to us that whether all the three actions of the ld AO were not correct. Accordingly, we dismissed ground No. 1 of the appeal. 9. Ground No. 2 and 3 of the appeal are with respect to taxation of interest on enhanced compensation. According to information available on record the assessee has not produced any evidence whether the interest on enhanced compensation is received u/s 34 or u/s 28 of the Land Acquisition Act. The ld AO as well as the ld CIT(A) has also not brought on record any information on that count. It has been held by the Hon'ble Supr....