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2016 (2) TMI 1087 - AT - Income TaxAddition of interest on enhanced compensation - Held that:- The undisputed facts are that the assessee has received during the year enhanced compensation on compulsory acquisition of land and interest on such enhanced compensation. This is also undisputed that the interest is received by the assessee under section 28 of the Land Acquisition Act. The Assessing Officer also does not have any quarrel to exempt the principal amount of enhanced compensation under section 10(37) of the Act. The only issue remaining is the taxability of interest on enhanced compensation received by the assessee under section 28 of the Land Acquisition Act. Interest received under section 28 of the Land Acquisition Act is a part of the compensation itself. The compensation being exempt under section 10(37) is not disputed by any of the lower authorities in the present case. In view of the above, we direct the Assessing Officer to delete the addition made on account of interest on enhanced compensation
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