2026 (6) TMI 148

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....tion of section 144B(1)(iii) of the Act by not providing intimation to the appellant that his case has been transferred to the National. Faceless Assessment Centre. 2. That on the facts and circumstances of the case, neither the JAO, nor the FAO has provided the recorded reasons to believe to initiate the reassessment proceedings which is bad in law. 3. That on the facts and circumstances of the case, the Ld. CIT (A), NFAC erred in upholding the addition made by the Ld. AO of Rs. 1,45,12,635/- (50% of 2,90,25,369/-) under section 56(2) of the Act to be taxable under the head "Income from other sources", by denying the exemption claimed by the appellant u/ s 10(37) of the Act. The addition having been made in complete viola....

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....eported in 315 ITR 1. 3.3 The Assessing Officer did not accept the contention of the assessee. The AO held that the interest received on enhanced compensation was taxable under section 56(2)(viii) of the Act under the head "Income from Other Sources". The AO further allowed deduction @ 50% under section 57(iv) of the Act and accordingly brought to tax a sum of Rs. 1,45,12,635/- being 50% of Rs. 2,90,25,269/- received by the assessee as interest on enhanced compensation. Accordingly, assessment under section 147 read with section 144B of the Act was completed. 4. Against the order of the AO the assessee went in appeal before the Ld. CIT(A). 4.1 Before the Ld. CIT(A), the assessee reiterated that the interest received under section 2....

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.... section 28 of the Land Acquisition Act is in the nature of compensation and not interest and therefore exempt under section 10(37) of the Act. Reliance was placed upon the judgments of Hon'ble Supreme Court in CIT Vs. Ghanshyam (HUF) and Union of India Vs. Hari Singh & Others. It was argued that the issue is squarely covered in favour of the assessee. 7. Per contra, the Ld. DR relied upon the orders of the lower authorities. The Ld. DR submitted that the issue is now squarely covered against the assessee by the decision of Chandigarh Bench of the Tribunal in the case of Shri Ajay Kumar Vs. ITO & Others in ITA No.463/Chd/2023 and connected matters. 7.1 The Ld. DR submitted that the Tribunal in the aforesaid decision has considered the....