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2019 (8) TMI 1423 - AT - Income TaxDisallowance of 50% interest on compensation/enhanced compensation u/s 56 (2)(viii) - HELD THAT:- We find that it is an undisputed fact that assessee has received interest u/s 28 of Land Acquisition Act, 1894. The Hon’ble Apex Court in the case of CIT vs Ghanshyam(HUF) [2009 (7) TMI 12 - SUPREME COURT] has clearly held that interest received by the assessee in view of section 28 of Land Acquisition Act 1894 is part of the compensation and therefore was not taxable. The Hon’ble Delhi Bench of the Tribunal in the case of Shri Opinder Singh Virk, vide [2019 (5) TMI 676 - ITAT DELHI] has dealt with the decision of the Hon’ble Supreme Court in the case of Chet Ram (HUF) [2017 (9) TMI 1532 - SUPREME COURT as well as the case laws of Ghanshyamdas and after analysing the same has again held that interest receipt on enhanced compensation u/s 28 of the Land Acquisition Act is in the nature of compensation. There is no error in the order of the AO treating the interest received by them u/s 28 of the LAA,1894,as compensation following the proposition laid down by the apex court in Ghanshyam HUF(supra). Appeal filed by the Revenue is dismissed.
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