2025 (12) TMI 1498

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....tset that the assessee does not wish to press for his legal ground challenging validity of the impugned reopening herein. Rejected accordingly. 4. Next comes the assessee's latter twin substantive grounds inter alia seeking to reverse both the learned lower authorities' action treating his cash deposits of Rs. 20,00,000/- as unexplained followed by interest on enhanced land acquisition compensation amounting to Rs. 23,63,278/- treated as taxable u/s 56(2)(viii), respectively, as upheld in the CIT(A)'s lower appellate discussion reading as under: "4. I have carefully considered the assessment order, the grounds of appeal, the submission filed by the assessee and other relevant material on record. 4.1. With regard to the ....

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....d supporting documentation. Despite the appellant's assertion that the transaction failed and necessitated returning the advance, no documentary evidence substantiated this claim. Consequently, the explanation for the cash deposit of Rs. 18,00,000 on 05/12/2014 is not accepted, and the Assessing Officer's addition to the extent of Rs. 20,00,000 is upheld. 4.4. In relation to the addition of Rs. 23,63,278 as interest on compensation received from the New Okhla Industrial Development Authority, though grounds were raised in Form #35, no written argument or mention was made in the submissions before this Authority. Accordingly, it is concluded that the appellant did not press the grounds concerning the addition of Rs. 23,63,27....

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....ender Pal Narang Vs. CBDT (2020) 423 ITR 13 (P&H) as well as PCIT Vs. Inderjit Singh Sodhi HUF (2024) 161 taxmann.com 301 (Del.) wherein the department has succeeded before their lordships that the impugned interest component ought to be assessed as income from "other" sources only. 8. The assessee on the other hand places strong reliance on Movaliya Bhikhubhai Balabhai vs. ITO (2016) 388 ITR 343 (Guj.), Rupesh Rashmikant Shah vs. Union of India (2019) 108 taxmann.com 181 (Bom) and Anvar Ali Poolakkodan Vs. ITO (2025) 173 taxmann.com 633 (Ker) holding that such an interest income on enhanced compensation under the provisions of the Land Acquisition Act, 1894 is not taxable even after the statutory amendment in section 57(iv) r.w.s. 56 r.....