TaxTMI 
TaxTMI 
2020 (10) TMI 1360
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....r has been passed even without serving statutory notice 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 intere....
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....also put on 30/3/2007. The assessee did not file any return and did not comply with any notices. 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 ....
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....iven below falling in the A.Y 2000-01:- Nature of payment Amount Date of payment LAC No. Enhanced compensation 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....
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....f its receipt. Supreme Court of India also held in the case of CIT vs Ghanshyam Dass (HUF) (2009) 315 ITR 1 (SC) that "Capital gain arises on account of compulsory acquisition of land 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. As....
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....d separately. In view of the above, the total income of the assessee for the A.Y 2000-01 is computed as under: i) Long term capital gain as discussed above(para-4.2) Rs. 89,70,358/- ii) Long Term capital 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 di....
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....rejecting the contention of the assessee that notice was not properly served. The revenue has made three different attempts to serve the notice. Firstly, by notice server on 22.03.2007 which was not accepted by the assessee. This is not disputed by assessee. 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 pr....