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2016 (1) TMI 1444 - AT - Income TaxAddition of compensation and interest thereon - rights relating to the land belonging to the legal heir - HELD THAT:- The assessee has entered into a sale agreement dt. 19.6.2002 a copy of which is placed at pages 1 to 12 of the paper book. This agreement discloses that both Mr.Ashok Kumar Singhal as well as his son Shri Varun Kumar Singhal have acquired all the rights relating to the land belonging to the legal heir of Late Shri Ram Prasad. Just because Mr.Varun Singhal has not contributed any part of the consideration, it cannot be said he has no rights in this agreement. Be it as it may, the Court of the ADJ has taken cognizance of this agreement and had decreed the issue in favour of the assessee. The decree stands in the name of both Shri Ashok Kumar Singhal and Shri Varun Kumar Singhal. The A.O. based his order on surmises. Hence we have no hesitation in upholding the order of the Ld.CIT(A) on this issue. Hence we dismiss this ground of appeal. On the issue of taxability of interest the Ld.CIT(A) followed the decision of Hon’ble Supreme Court in the case of Rama Bai vs. CIT [1989 (11) TMI 2 - SUPREME COURT]and in the case of CIT vs. Ghanshyam HUF [2009 (7) TMI 12 - SUPREME COURT] The Ld.D.R. has not pointed out any contrary decision. Thus we uphold this order of the Ld.CIT(A) and dismiss the appeal of the Revenue.
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