TaxTMI 
TaxTMI 
2019 (6) TMI 1757
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....ppeals relating to connected assessee on similar issue were heard together and are being disposed of by this consolidated order for the sake of convenience. However, in order to adjudicate the issues, reference is being made to the facts and issues in ITA No.1434/PUN/2017. 3. The assessee in ITA No.1434/PUN/2017 has raised the following grounds of appeal:- 1) On the facts and in the circumstances of the case and in law the Ld. CIT(A)-Aurangabad was not justified in confirming the order of the A.O. wherein the addition of Rs.96,31,167/- was made by the A.O. invoking the provisions of S. 56(2)(viii) of the Act. The Ld. CIT(A) ought to have considered that the claim of the assessee was covered by S. 10(37) of the Act and therefore,....
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....ct. Therefore, the A.O. be directed to compute the LTCG accordingly. 4. The appeal was fixed for hearing. However, notice of hearing sent to the assessee by RPAD has been returned back and even AD is attached thereto. There is no other communication address available. Hence, we proceed to decide the present appeals after hearing the learned Departmental Representative for the Revenue. 5. The issue which arises in the present appeals is against interest received on enhanced compensation under section 28 or under section 34 of Land Acquisition Act, whether the same is taxable in the hands of assessee or not. 6. The learned Departmental Representative for the Revenue has fairly pointed out that the issue raised in the present appeals ....
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.... compensation it shall be treated as "deemed income" and taxed on receipt basis. Our above understanding is supported by insertion of clause (c) in Section 45 (5) w.e.f. 1-4-2004 and Section 155(16) which refers to a situation of a subsequent reduction by the Court, tribunal or other authority and recomputation/amendment of the assessment order. 54. Section 45(5) read as a whole [including clause (c)] not only deals with reworking as urged on behalf of the asseess but also with the change in the full value of the consideration (computation) and since the enhanced compensation/consideration (including interest under Section 28 of the 1894 Act) becomes payable/paid under the 1894 Act at different stages, the receipt of such enhanced ....
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....g on for the last two decades, we are of the view that in this batch of cases which relate back to Assessment Years 1991-1992 and 1992-1993, possibly the proceedings under the LA Act, 1894 would have ended. In a number of cases we find that proceedings under the 1894 Act have been concluded and taxes have been paid." 8. Now, coming to the facts of present case, we find that the assessee has challenged the orders of authorities below, wherein the addition under section 56(2)(viii) of the Act has been made at Rs. 96,31,167/- in ITA No.1434/PUN/2017 and Rs. 96,31,167/- in ITA No.1435/PUN/2017. The case of assessee before the Revenue authorities was that the alleged interest was part of enhanced compensation and was exempt from tax under sec....