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2022 (3) TMI 645 - AT - Income TaxCorrect head of income - Interest awarded u/s. 28 of Land Acquisition Act, 1894 - whether taxability of such interest is of Capital nature and should be included to Consideration received for the purpose of computation of capital gain u/s. 45 of Income Tax Act, 1961? - HELD THAT:- After considering the submissions of both the parties, it is noticed that a similar issue has already been adjudicated in case of ITO Vs. Smt. Chawli Devi [2021 (5) TMI 730 - ITAT CHANDIGARH] wherein held 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. Decided in favour of assessee.
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