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2014 (6) TMI 288 - AT - Income TaxTaxability of interest awarded – Exemption u/s 10(37) - Compensation paid for acquisition of land – agriculture land - Held that:- The assessee is entitled to get 30% amount under the head of “Solatium” and also entitled to get 9% interest for the first year and thereafter at the rate of 15% for the second year upto depositing of the awarded amount - Court has also ordered for 12% increase from the date of publication of the notification u/s.4 i.e. 13.08.1992 to the date of award i.e. 10.04.1995 passed by the Land Acquisition Officer as provided u/s 23(1)(A) of the Act - all these amounts form part of the compensation – Relying upon in the view of the judgement of Hon’ble Supreme Court in the case of CIT vs. Ghanshyam (HUF)[2009 (7) TMI 12 - SUPREME COURT] - since the case is transfer of agricultural land, therefore, this amount is exempt u/s.10(37) of the Act. The authorities ought to have given a clear finding as to how the amount would become taxable if it is forming integral part of the compensation, when transfer is of the agricultural land - the claim was not made before the authorities, but arising from the material available before the AO, requires fresh adjudication by the AO – thus, the claim of the assessee is remitted back to the AO for fresh adjudication – Decided in favour of Assessee.
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