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2022 (6) TMI 1371 - AT - Income TaxIncome from other sources - compensation received by the appellant against compulsory acquisition of agricultural land along with interest - AO treated the interest u/s 56(2)(viii) r.w.s. 145A(b) and allowed deduction u/s 57(iv) - HELD THAT:- CIT(A) grossly ignored the judgment of Hon’ble Supreme Court in the case of CIT Vs. Ghanshyam (2009 (7) TMI 12 - SUPREME COURT] and difference between interest received u/s 28 and Section 34 and interest received u/s 37 of the Income Tax Act, 1961. The interest u/s 28 is a part of the amount of compensation whereas interest u/s 34 is only for delay in making payment after the compensation is determined. Interest u/s 28 is a part of enhanced value of the land. The certificate from the DRO has been given to the AO during the assessment proceedings and could not have been treated as additional evidence. In any case, if a request has not been made under Rule 46A, the ld. CIT(A) being the senior functionary of the Department is expected to guide the assessee instead of summarily dismissing the appeal. In case the veracity of the certificate is suspected, the same could have been enquired from the DRO and in case of any falsification, prosecution provision could be invoked against the assessee/AR who has filed the certificate. Decided in favour of assessee. Unexplained addition to the capital account - As we find that the amount of Rs.3.91 Cr. and Rs.3.80 Cr. has been reconciled and the capital account as on 31.03.2013 stands at Rs.6.31 Cr. which includes the compensation received. Hence, the addition is liable to be deleted. Appeal of the assessee is allowed.
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