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2007 (2) TMI 655 - AT - Income TaxTax interest granted on enhanced compensation - quantum of enhanced compensation - HELD THAT:- We find that in the present case the assessee has already received the enhanced compensation as we as interest on such enhanced compensation. HUDA who has acquired the land has not challenged the quantum of enhanced compensation in further appeal. Only the landowners have challenged the compensation granted in this regard. Thus the amount of interest which has already been received is not going to be recovered back. Thus to the extent of amount already received, the same has attained finality and hence in view of the decision of Special Bench of the Tribunal in the case of Dy. CIT v. Padam Prakash (HUF) [2006 (9) TMI 222 - ITAT DELHI-E] the interest actually received has to be brought to tax. This ground is accordingly to be dismissed in all the cases. Denial of exemption u/s 54B r/w section 54H - HELD THAT:- Investment in the new agricultural land by the assessee in the name of their family members cannot be a bar for granting exemption u/s 54B/54H of the Act. So long as the consideration has passed from the consideration received on transfer of asset, deduction has to be granted considering the spirit of the provision. We accordingly hold that in view of the discussion and in view of the decision of the Tribunal in Babu Ram v. ITO [2004 (2) TMI 285 - ITAT DELHI-A], the assessee is entitled to deduction u/s 54B/54H of the Act. The Assessing Officer shall verify that the assessee has invested in agricultural land based on the land records as may be produced by the assessee before him. If it is found that the assessee has acquired agricultural land, the assessee should be held eligible for exemption u/s 54B/54H of the Act.
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