TMI Blog2019 (7) TMI 1928X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the nature of solatium and is integral part of compensation. The said interest is in the nature of capital receipt and hence not exigible to tax under the provisions of Income Tax Act. Whereas, interest received u/s. 34 of the L.A. Act is on account delayed payment of compensation and is a revenue receipt. Though the amount received u/s. 28 and u/s. 34 of the L.A. Act are termed as interest however they stand on different pedestal in so far as the provisions of Income Tax Act are concerned. In the instant case, it is not disputed by the Revenue that the amount received by the assessee as interest is u/s. 28 of the L.A. Act. Therefore, entire amount is exempt from tax being capital receipt. We find merit in the contention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is terminates either by default or inaction. The Hon ble Apex Court in various other decisions has taken similar view in liberally accepting the explanation furnished by the assessee for condoning the delay in filing of appeal. Thus, in view of the law laid down by the Hon ble Apex Court and the for reasons stated in the affidavit by the assessee/appellant, the delay of 112 days in filing of appeal is condoned. The appeal is admitted to be heard and disposed of on merits. 3. Shri Bharat Shah appearing on behalf of the assessee submitted that the assessee is an agriculturist. The land of the assessee was acquired and the assessee received compensation of Rs.50,78,948/- and interest u/s. 28 of Land Acquisition Act (hereinafter referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is subject matter of dispute was received u/s. 28 of the L.A. Act, placed on record copy of the judgment passed by Civil Judge, Senior Division, Ahmedpur dated 03-03-2008 and the statement drawn by Land Acquisition Collector, Urna Project, Latur. 4. On the other hand Shri Rajesh Gawali representing the Department vehemently defended the impugned order. The ld. DR submitted that the interest received by the assessee u/s. 28 of the L.A. Act is taxable. The ld. DR submitted that the authorities below have allowed relief to the assessee to the extent the assessee was eligible under the provisions of the Act. 5. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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