Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 676 - AT - Income TaxNature of receipt - interest u/s 28 of the Land Acquisition Act - additional amount u/s 23(1A) - solatium u/s 23(2) - will form part of enhanced compensation u/s 45(5)(b) - HELD THAT:- Section 45(5) makes no reference to the nature of property that is acquired but it deals with the category of cases which falls in the description of “capital assets”. Section 10(37) exempts specifically an income chargeable under the head “capital gains” arising from the transfer of agricultural land. It is, therefore, clear that once the Hon’ble Supreme court directed the AO in the case of Hari Singh [2017 (11) TMI 923 - SUPREME COURT] that after examining the facts to apply the provisions contained in the Income-tax Act with a specific reference to the agricultural land stating that in case if it is found that the compensation was received in respect of the agricultural land, the tax deposited with the Income-tax Department shall be refunded to these depositors. What was acquired by the Government was an agricultural land and such a fact is well evident from the assessment order itself . As a matter of fact, AO, by granting exemption under section 10(37) of the Act, refunded a sum of ₹ 1,22,01,723/-. Only question is whether the interest received u/s 28 of the Act assumes the character of enhanced compensation and consequently it is exempt u/s 10(37) ? - In view of the decisions of the Hon’ble Supreme Court referred to above, we do not have any doubt in our mind as to the law in this aspect and while respectfully following the ratio laid down by the Hon’ble Supreme Court in the case of Ghanshyam [2009 (7) TMI 12 - SUPREME COURT] and Hari Singh [2017 (11) TMI 923 - SUPREME COURT] above, direct the AO to refund the TDS amount that was deducted on account of the interest received under section 28 of the Land Acquisition Act Also. With these directions, we allow the appeal of the assessee.
|