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2021 (11) TMI 136 - AT - Income TaxTaxability of interest received on enhanced compensation paid by the State of Uttar Pradesh for compulsorily acquiring of the agricultural land of the assessee - interest on the enhanced compensation paid by the NOIDA on which TDS u/s.194A has been duly deducted - AO allowed 50% of the interest received on the enhanced compensation and taxed an amount - whether the interest on enhanced compensation partake the character of compensation or interest? - HELD THAT:- As decided in case of Inderjit Singh Sodhi (HUF) [2020 (6) TMI 697 - ITAT DELHI] interest received by the assessee during the impugned year on the compulsory acquisition of its land u/s 28 of the Land Acquisition Act, is in the nature of compensation and not interest which is taxable under the head income from other sources u/s 56 of the Act as held by the authorities below. The compensation being exempt u/s 10(37) of the Act is not disputed. In view of the same the order passed by the CIT(Appeals) upholding the addition made by the AO on account of interest on enhanced compensation is, not sustainable. Further the issue under consideration regarding the taxability of interest on enhanced compensation is a debatable issue and do not constitute a mistake apparent on record. In view of the limited and restricted powers of rectification u/s 154 or u/s 254 as the case may be, it cannot be said that any mistake apparent on record had occurred in the order of the Tribunal. In view of the above discussion, these appeals of the assessee are hereby allowed.
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