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2019 (1) TMI 1712 - AT - Income TaxExemption u/s. 10(37) - taxability of interest received on enhanced compensation - interest u/s. 28 of the Land Acquisition Act, 1894, which was held to be part of compensation in the case of Ghanshyam (HUF) [2009 (7) TMI 12 - SUPREME COURT] - applicability of sections 145A(b), 56(2)(viii) and 57(iv) - HELD THAT:- We find that the assessee’s case is squarely covered in her favour by the decision of Surinder Kumar v. DCIT & Ors. [2018 (10) TMI 1754 - ITAT CHANDIGARH] wherein the ITAT after following the decision of Hon’ble Supreme Court in the case of Ghanshyam HUF held that interest received by the assessee during the impugned year on the compulsory acquisition of its land u/s 28 of the Land Acquisition Act, is in the nature of compensation and not interest which is taxable under the head income from other sources u/s 56 of the Act as held by the authorities below. The compensation being exempt u/s 10(37) of the Act is not disputed. In view of the same the order passed by the CIT(Appeals) upholding the addition made by the AO on account of interest on enhanced compensation is, not sustainable. - Decided in favour of assessee.
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