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2017 (12) TMI 1792 - AT - Income TaxAddition u/s 57(iv) - interest received on delayed payment of enhanced compensation in respect of compulsory acquisition of agricultural land - A.R submitted that interest received on compulsory acquisition of agricultural land is nothing but enhanced compensation on the land acquired by the Authorities and it is to be exempted u/s.10(37) - HELD THAT:- The argument of the ld.A.R is having no merit. Interest on delayed payment of enhanced compensation in respect of acquisition of immovable property is a revenue receipt and it is to be taxed and cannot be exempted u/s.10(37) of the Act and it cannot be considered as a part of consideration received in respect of agricultural land specified us.2(14)(iv) . Assessee argument stating that spreading of interest received to different assessment years - The assessee in this case had not demonstrated that it is following mercantile system of accounting. Hence, it is to be taxed on cash system basis i.e. receipt basis. This ground of appeal is also rejected. A.R submitted that proper opportunity of hearing to the assessee by the lower authorities was not offered during proceedings - There is a violation of principles of natural justice. Before me, the ld.A.R is not able to demonstrate how the opportunity is not given by the lower authorities in prosecuting the case before them. In the absence of any material to show that the lower authorities failed to give proper opportunity of hearing to the assessee, this ground of appeal is also dismissed.
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