2025 (8) TMI 914

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....e Act"] arising from the assessment order dated 30.12.2019 passed u/s 143(3) r.w.s. 254 of the Act pertaining to assessment year 2010-11. 2. Brief facts of the case are that in this case, the original assessment was completed u/s 143(3) dated 13.02.2013 wherein various additions were made on account of enhanced compensation and interest on enhanced compensation which were challenged by the assessee before the appellate authorities and finally, the matter was remanded back by the Co-ordinate Bench of Tribunal in ITA No.6051/Del/2013 vide order dated 29.06.2018. Thereafter, the order u/s 143(3) r.w.s. 254 was passed by the AO on 30.12.2019 assessing the income of the assessee at INR 3,14,33,400/- which includes the income computed under he....

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....on the facts and in the circumstances of the case the impugned effect orders being passed in non-compliance of the appeal order of this Hon'ble Tribunal is illegal, arbitrary and against the true facts of the present case. 3. THAT on appeal, the Ld. First Appellate Authority vide impugned appeal order dated 15/08/2024 has further erred to hold that this issue is not the subject matter of rectification and upheld the view of the Ld. Assessing Officer. 4. THAT the appellant craves leave to add, amend, revise, modify, substitute or delete any or all grounds of appeal or/and prayer made." 5. At the outset, Ld.AR drew our attention to para 45 of the order passed by ITAT in ITA No.6051/Del/2011 wherein the Tribunal has in....

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....ility of computation mechanism of enhanced compensation and interest on enhanced compensation. Compensations is chargeable to tax u/s 45(5) of the Income Tax Act, 1961 in the year in which it is received. There is no dispute with respect to chargeability of that sum. The only dispute remains is that how the interest on the enhanced compensation would be chargeable to tax. The provision of section 56(2)(viii) provides that income by way of interest received on enhanced compensation is income of the assessee and same shall be chargeable to tax according to section 145A (b) of the act. The provision of section 145A (b) provides that the interest shall be deemed to be the income of the year in which it is received. Therefore, the enhanced compe....