TMI Blog2011 (8) TMI 679X X X X Extracts X X X X X X X X Extracts X X X X ..... acquired whereas interest under Section 34 is for delay in making payment. This vital difference needs to be kept in mind in deciding this matter. Interest under Section 28 is part of the amount of compensation whereas interest under Section 34 is only for delay in making payment after the compensation amount is determined. Cort held question of law does not does not survive and arise for consideration as the amount was compensation under Section 23 28 and not not interest u/s 34. - Decided against the revenue. - I.T. Appeal No. 43 of 2007 with I. T. Appeals No. 38, 39, 41, 62 of 2007, 8, 16 & 42 of 2008 - - - Dated:- 8-12-2011 - Mr.Justice R. B. Misra, Judge, Mr.Justice Sanjay Karol, Judge, JJ. For the appellant : M/s. Vinay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come as per the return filed by the assessee, came to the conclusion that the component of interest was to be taken as income in the respective financial year. Order dated 23.1.2006 passed by the Income Tax Officer, Khaneri, Rampur Bushahr was affirmed by the Commissioner of Income Tax (Appeals), Shimla in the appeal filed by the assessee. But however in a further appeal filed by the assessee, before the Income Tax Appellate Tribunal, Chandigarh Bench (Camp at Shimla-Bench-II) vide order dated 13.6.2007, order passed by the Assessing Officer as affirmed by the Appellate Authority, was set-aside by holding that since the appeals filed by the assessee, seeking enhancement of compensation were pending before this Court, as such, the component ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpensation or the sum equivalent thereto. Thus, interest awardable under Section 28, would include within its ambit both the market value and the statutory solatium. It would be thus evident that even the provisions of Section 28 authorise the grant of interest on solatium as well. Thus solatium means an integral part of compensation, interest would be payable on it. Section 34 postulates award of interest at 9% per annum from the date of taking possession only until it is paid or deposited. It is a mandatory provision. Basically Section 34 provides for payment of interest for delayed payment. 5. Thus, in our considered view, question of law does not survive and arise for consideration as the amount of the enhanced compensation, incl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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