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2014 (3) TMI 1199 - AT - Income TaxInterest received u/s 28 of the Land Acquisition Act, 1894, on enhanced compensation - Whether was not part of compensation but liable to tax under the head ‘Income from other sources’? - HELD THAT:- There is no dispute to the fact that the enhanced compensation is awarded by the Additional District Judged vide his order dated 14.03.2008 under section 28 of the Land Acquisition Act, as has been affirmed by the AO in his order reproduced hereinabove. It is also not under dispute that the Hon’ble Supreme Court, in the case of CIT vs. Ghanshyam (HUF) [2009 (7) TMI 12 - SUPREME COURT] has laid down that the amount received under section 28 is part of the amount of compensation whereas interest u/s 34 is only for delay in making payment after compensation. In the present case, the amount is received u/s 28 of the Land Acquisition Act, 1894 and therefore, according to us this is a compensation and cannot take part of the compensation u/s 45(5) and is exempt u/s 10(37) of the Income Tax Act, 1961. Accordingly, the Ld. CIT(A) is not justified in confirming the action of the A.O. we direct the A.O. to delete the addition made. Thus, all the grounds of the assessee are allowed.
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