TMI Blog2013 (11) TMI 1450X X X X Extracts X X X X X X X X Extracts X X X X ..... wani Taneja, Advocate. ORDER Per TS Kapoor, AM: This is an appeal filed by the revenue against the order of Ld CIT(A) dated 23.3.2011. The grounds raised by the revenue are as under:- 1. On the facts and in the circumstances of the case, the Ld CIT(A) has erred on facts and in law in deleting the addition of Rs.12,18,994/- (Rs.12,33,981/- minus Rs./14,987/-) made by the Assessing Officer on account of interest ordered by the Court on enhanced compensation from the date of taking over the possession of the land to the date of payment of deposit of the enhanced compensation is in the nature of compensation, which as per findings of the Hon'ble Apex Court in the case of CIT v. Ghanshyam (HUF) 315 ITR 1 (SC) is to be taxed in the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions against the order passed by the Assessing Officer u/s 144 of the Act and also submitted that the land acquired represented agricultural land and therefore is was not a capital asset and its transfer cannot give rise to capital gain. The reopening of the case u/s 148 was also challenged as the notice was not served on all legal heirs. Reliance in this respect was placed on a number of case laws. The Ld CIT(A) after going through the submissions of the assessee and after going through the documents and evidences placed on record and on the basis of various judicial pronouncements deleted the addition made by the Assessing Officer by holding as under:- "As regards interest on enhanced compensation, the appellant received interes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancement of compensation but it has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the Court on a time basis. In so far as interest payable u/s 28 of that Act is concerned, the Hon'ble Court has now held that it is in the nature of compensation which becomes taxable in the year of receipt as per the amended law. However, it does follow from the aforesaid decision that interest payable u/s 34 which is chargeable under the residuary head, cannot be said to accrue on the date when the court passed the order. It may be mentioned that the decisions in the case of Ram Bai and KS Krishna Rao (supra) were rendered without having regard to the system of accounting followed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nced compensation. However, he submitted that on the basis of judicial pronouncements the interest received cannot be taxed in the year of receipt and rather it has to be spread over on an annual basis right from the date of delivery of possession till the date of the order of the Court on time basis. Reliance in this respect was placed on various case laws placed in the paper book at pages 1 to 49 particularly reference was placed on the judgment of Hon'ble Punjab Haryana High Court in the case of CIT v. Bhoop Room DAgar HUF Others reported in 312 ITR 157and our attention was invited to page 43. The Ld AR further argued that the said judgment has followed the judgment of Hon'ble Supreme Court in the case of Rama Bai (supra) wherein it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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