TMI Blog2010 (12) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... not covered by Section 45(c) of the Act - it is taxable in the year of receipt - Decided against the assessee - I.T.A. No.85 of 2010 - - - Dated:- 16-12-2010 - MR. JUSTICE ADARSH KUMAR GOEL, MR. JUSTICE AJAY KUMAR MITTAL, JJ. Mr. Yogesh Putney, Sr. Standing Counsel for the applicant/revenue. Mr. Akshay Bhan, Advocate for the non-applicant-assessee. ADARSH KUMAR GOEL, J. 1. This application has been filed for modification of order dated 5.7.2010 passed by this Court while disposing of the main appeal. 2. The assessee received compensation for his land acquired under the provisions of the Land Acquisition Act, 1894 for public purpose vide notification dated 29.1.1990. The Collector gave award dated 21.1.1993 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether, on the facts and in the circumstances of the case, learned ITAT is right in law in holding that the land in question was not a capital asset thereby completely ignoring the evidence on record considered by the Assessing Officer? (v) Whether, on the facts and in the circumstances of the case, learned ITAT is right in law in admitting the additional evidence in the shape of copy of bank pass book and certificate from LAC, Panchkula for holding that the original compensation of Rs.983027.50 had been received by the assessee on 28.01.1993 without recording any reasons as required under Rule 29 of the Income Tax (Appellate Tribunal) Rules, 1963 and without giving any opportunity of being heard to the revenue before admitting and con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, the parity of reasoning laid down by the Hon ble High Court in the cases of Chandi Ram others (supra) and Hardwari Lal, HUF (supra) clearly support the case of the assessee for the assessment year under consideration. Thus, the Revenue fails on these grounds also. 7. The Tribunal failed to consider taxability of interest and only focused on liability now to be taxed in the year of receipt. The view of the Tribunal that interest on enhanced compensation was not liable to be taxed in the year of receipt or at all, cannot be sustained in view of judgment in Ghanshyam (HUF). In Ghanshyam (HUF), the Hon ble Supreme Court observed:- ......Section 28 of the 1894 Act applies only in respect of the excess amount determined by the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Land Acquisition Act, interest under Section 34 is part of compensation while interest under Section 28 is not. This aspect has also been discussed in the above judgment in following terms:- ......The award of interest under Section 28 of the 1894 Act is discretionary. Section 28 applies when the amount originally awarded has been paid or deposited and when the Court awards excess amount. In such cases interest on that excess alone is payable. Section 28 empowers the Court to award interest on the excess amount of compensation awarded by it over the amount awarded by the Collector. The compensation awarded by the Court includes the additional compensation awarded under Section 23 (1A) and the solatium under Section 23(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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