2023 (3) TMI 1570

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.... 28 of LA Act which was explained by SC CIT V Ghanshyam(HUF).       490440 2. Supreme Court in Mahender Pal Narang V CBDT dismissed the SLP filed against the order of Punjab and Haryana HC which held interest u/s 28 is to be treated as income from other sources. SC dismissed SLP in lime line. If such an order is non-speaking, it is not a declaration of law. 3. Gujarat High Court in Movaliya Bhikhubhai Balabhai V ITO analysed nature of Sec 28 interest and whether the amendment to sec 145A of IT Act changes the premise set up by CIT V Ghanshyam(HUF),It held interest u/s 28 partakes the character of compensation. 4. The Delhi ITAT in Shri Pranav Saran V ACIT held if one High Court is in favour of the assesse....

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....he act. Assessee in response to the notice u/s. 148, filed the return of income declaring total income of Rs. 2,93,240/- and other exempted income of Rs. 98,21,930/-. 2.2 Assessee also submitted that, the assessee claimed entire amount received as exempt u/s. 10(37) including the interest received as the said land acquired was agricultural land. On verification of the various details, the assessing officer was convinced regarding the principle amount received by assessee as additional compensation to be exempt u/s. 10(37) of the act however in respect of the interest of Rs. 31,91,464/- the Ld.AO was of the opinion that as per section 145A(b) and 56(2)(vii) w.e.f. 01.04.2010, the income by way of interest on compensation or enha....

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....n the subject discussed above, one can only arrive at the inescapable conclusion that the interest received u/s 28 of the Land Acquisition Act shall partake the character of revenue receipt as per the extant provisions of section 56(2)(viii) of the Income-tax Act, 1961. In this view of the matter, no infirmity is found in the action of the A.O. in treating the interest of Rs. 31,91,464/- as revenue receipt eligible to tax u/s. 56(2)(viii) read with section 57(iv) of the Act. Consequently, the ground of appeal raised by the appellant in this behalf fails." 4. Aggrieved by the order of the Ld.CIT(A), assessee is in appeal before this Tribunal. 4.1 All the grounds raised by the assessee are interconnected to one single issue being d....

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....e judge of Kozhikode. The award included additional compensation with interest at the rate of 9% pa. for a period of one year from 23.04.2014. The award also included interest of 15% pa. till the date of payment. In our considered view, the interest of 9% received by assessee for a period of one year on the additional compensation was by way of accretion to the value and therefore would not fall within the ambit of the expression "interest" as envisaged u/s. 145A(b) of the act. In support of this, we refer and rely on section 28 of the Land Acquisition act, 1894 that reads as under: "Section 28 'Collector may be directed to pay interest on excess compensation - If the sum which, in the opinion of the Court, the Collect....