2023 (6) TMI 564

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....CIT(A) erred in sustaining the addition made by the Ld. AO of Rs. 2,10,82,026/- on account of non-deduction of TDS u/s 194 A of the Act, though the same was not applicable to the assessee. 3. That the Ld. CIT(A) erred in sustaining the demand raised by the Ld. AO amounting Rs. 2,10,82,026/- u/s 201(1) & (1A) for failure on the part of the assessee to deposit TDS on interest payments. 4. That the Ld. CIT(A) erred in rejecting the contention that payments made on account of interest on compensation /enhanced compensation forms part of compensation and not part of interest. 5. That the Ld. AO erred in not providing sufficient opportunity to the assessee for producing the supporting documents. 6. That the Ld. CIT(A) erred in not fol....

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....Ld. Representative of the parties and perused the records. Identical issue came up for consideration before the Delhi Bench of the Tribunal in assessee's own case in ITA Nos. 39,40,41/Del/2021 for AY 2010-11, 2011-12 and 2012-13 and the Tribunal vide order dated 22.03.2022 recorded the following observations/findings: "7. We have heard the Ld. Representatives of the parties and carefully considered their arguments. We have also perused the material on record. The assessee is Land Acquisition Office and is governed by the provisions of Land Acquisition Act, 1984. The LAO acquired land from the land owners under compulsory acquisition for public purposes as per the directions of Haryana Urban Development Authority (HUDA). The land owners go....

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.... nature of compensation and not interest which is taxable as income from other sources under section 56 of the Act. Following the judgment of Hon'ble Punjab & Haryana High Court in Jagmal Singh (supra) and the judgment of the Hon'ble Supreme Court in Ghanshyam (HUF) (supra) we hold that the interest received by the land owners on enhanced compensation awarded by the court is not in the nature of income from other sources under section 56 of the Act. Consequently, the TDS provisions of section 194A will not be attracted. 7.2 It has also been urged in the additional grounds that interest on enhanced compensation under section 28 of LA Act, being an integral part of consideration is exempt from capital gains tax under section 10(37) of the ....