2025 (12) TMI 1107

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....T KUMAR, J.M: This is an appeal filed by the Assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 27/11/2024 for the A.Y. 2015-16. 2. In the present appeal, Assessee has raised the following grounds: 1. That the assessment order passed by AO is without jurisdiction. 148 notice was issued by Ward 5, Panchkula and Assessment order is passed by Ward 4, Panchkula. It is submitte....

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.... if compensation is exempt from tax, the interest payable on such compensation shall also be exempt from tax.". Hence, addition made of Rs. 11,66,594/- be deleted. 3. Briefly the facts of the case that the assessee, was a non-filer for AY 2015-16. The case was reopened based on information that he had received interest on enhanced compensation related to land acquisition. He received a total in....

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....ance Act 2009, Section 56(2)(viii) specifically taxes interest on compensation or enhanced compensation as "Income from Other Sources", with a 50% deduction under Section 57(iv). Relying on recent judgments, including Inderjit Singh Sodhi (HUF) (Delhi HC, 2024) and Puneet Singh (P&H HC), the CIT(A) concluded that such interest whether under Section 28 or otherwise is a taxable revenue receipt. The....

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.... rival submissions and examined the record. We observe that the Coordinate Chandigarh Bench, in the case of Ajay Kumar (supra), has already adjudicated identical arguments. The Bench ruled that interest on compensation falls within the ambit of Section 56(2)(viii) and is taxable in the year of receipt pursuant to Section 145B(1). The Bench explicitly rejected the applicability of Section 10(37) to....