TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 752
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....at the assessment order is prejudicial to the interest of Revenue, which are to be cumulatively satisfied. 3. That having regard to the facts and circumstances of the case and in law, the Ld. PCIT erred in exercising jurisdiction under section 263 of the Act in setting aside the issue of taxability of interest u/s 28 of the Land Acquisition Act granted as part of enhanced compensation, which was duly scrutinized by the Assessing Officer while passing the assessment order under section 143(3) of the Act. 4. That the learned Pr, Commissioner of Income-tax has failed to appreciate that once the learned Assessing Officer on examination of the facts on record and after making all possible enquiries had accepted claim of the appellant then such an order of assessment could not be regarded as erroneous in as much as prejudicial to the interest of revenue merely because the learned Pr. Commissioner of Income-tax had a different opinion and that too, without having established in any manner that, view adopted by the learned Assessing Officer was an impossible or unsustainable view. 5. That the learned Principal Commissioner of Income-tax has failed to appreciate that action u/s 263 of....
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....llowing issues need to be examined :- (i) Whether the interest received on said enhanced compensation is exempt under any specific provisions of Income-tax Act, 1961? (ii) Whether the interest received on such enhanced compensation is exempt, has been stated by the jurisdictional High Court of Punjab & Haryana or Supreme Court? (iii) Whether the provisions of section 56(2)(viii), 57(iv) read with section 145A are applicable in the case of assessee? (iv) Whether the AO is exempt from jurisdictional High Court judgments on any legal issue? (v) Whether the interest received on enhanced compensation is taxable as income under the head 'income from other sources'? (vi) Whether the assessment order which is passed without inquiry and following the valid and applicable judgments of jurisdictional High Court ignoring the statutory provisions and read with Explanation 2 of section 263, can be held as erroneous and prejudicial to the interest of revenue by PCIT u/s 263? 3. Accordingly, Ld. PCIT listed various conditions which are mandatory to claim the exemption u/s 10(37) of the Act at page 3 of his order. Accordingly, notice was issued to the assessee to explain the same. In r....
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....essment year. I had received enhanced agriculture land compensation and interest u/s 28 of Land Revenue Act. It is a part of enhanced compensation as per various court decision, ITATS, Apex Court and Hon'ble High Courts of many States in India. 5. Sir, I want to say that after submitted many court's decision in this regard, the Assessing Officer has denied to allowed interest as part of enhanced compensation and added 50% of interest amount received on compensation received from collector of compulsory acquisition of agriculture land as the provision of Section 56(2)(viii) and 57(iv) read with sub-section (10) of section 145B of the Income Tax Act, 1961in my income and taxes on it. I have deposited all tax amount within period of one month and applied u/s 270AA for waive off 100% penalty proceeding u/s 270A(9). 6. Sir, I have submitted all required documents to the good office of the assessing Officer that TDS was wrongly deducted by Office of Compulsory Acquisition Collector which was deducted on the total amount awarded by Hon'ble Court instead of only interest amount. Now I am submitting Hon'ble Court order for your ready reference 7. I request you to drop ....
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....nterest u/s 28 of Land Revenue Act. 5. Sir, I want to say that after submitted many court's decision in this regard, the AO has denied to allowed interest as part of enhanced compensation and added 50% of interest amount received on compensation received from collector of compulsory acquisition of agriculture land as the provision of Section 56(2)(viii) and 57(iv) read with sub-section (10) of section 145B of the Income Tax Act, 1961in my income and taxes on it. I have deposited all tax amount within period of one month and applied u/s 270AA for waive off 100% penalty proceeding u/s 270A(9). 6. Sir, I am submitted a copy of the Land Acquisition Act, 1894 for your record. 7. I request you to drop this notice and oblige me in this regard." 5. After considering the above, ld. PCIT rejected the submissions of the assessee and observed that the judgments relied upon by the assessee has been discussed and which are distinguishable. Ld. PCIT discussed the provisions of section 28 of Land Acquisition Act, 1894, sections 23 and 34 in his order and discussed various case laws relevant for the present issue in his order and finally held as under :- "66. After due consideration it....
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....the interest of revenue because the Assessing Officer has expressed his opinion although it may be on wrong assumption of facts and application of law. If this order is not revised or cancelled, the assessee will enjoy the tax benefit by not filing its return truly and correctly as per the law of the jurisdictional High Court. 68. In view of facts and legal position stated above, it is hereby held that assessment order u/s 143(3) read with section 1448 of the Income Tax Act, 1961 vide order dated 19.09.2022 passed in this case for Assessment Year 2020-21 is erroneous in so far as it is prejudicial to the interest of revenue. Consequently, in exercise of the power conferred in the Section 263 of the Income Tax Act, 1961, the said assessment order dated 19.09.2022 is set aside, but only to the extent as discussed in the order. Accordingly, the Assessing Officer is directed to make addition of Rs. 1 0,81,9751- (50% of Rs. 21,63,951/-) by applying provision of section 2(28A) r.w.s. 56(2)(viii), 57(iv) and 145A(B) of the Income Tax Act, 1961. The AO is directed to pass assessment order a fresh and re-compute the assessee's income after making further enquiries as directed in the f....
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....at assessee has received compensation, solatium and additional cost @ 12%. After discussing the compensations received by the assessee to the extent of Rs. 98,74,920/-, we observe that the compensation and solatium received by the assessee falls within section 23 of the Land Acquisition Act and the additional cost received by the assessee which forms part of interest compensation award to the assessee. Therefore, he came to the conclusion that the additional cost @12% received by the assessee of Rs. 21,36,951/- is subject to tax. Therefore, the AO has not verified the compensation properly and not applied the jurisdictional High Court order in the present case. After considering the findings of the ld. PCIT in detail, we observe that ld. PCIT at para 15 of the order discussed the provisions of section 23(1A) of the Land Acquisition Act and he observed that compensation awarded by the Court is a determination and conclusion on the said rate also includes the payment as per section 23(1A) and solatium u/s 23(2) of the Land Acquisition Act, 1894. The additional rate does not include interest and it is not mandatory. It is left to the discretion of the Court. The provisions of section ....