Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (10) TMI 356 - AT - Income TaxInterest received by the assessee u/s. 28 of the Land Acquisition Act, 1984 - Whether treated as interest income separately chargeable to tax instead of a part and parcel of the sale consideration? - assessee treated such amount as part of the enhanced compensation of land and claimed the same as exempt from tax on the ground that the land itself was agricultural - HELD THAT:- Hon’ble Supreme Court in CIT Vs. Ghanshyam (HUF) [2009 (7) TMI 12 - SUPREME COURT] held that interest u/s.28 under The Land Acquisition Act, is to be taxed as part of consideration on receipt basis. This judgment was delivered on 16-07-2009. The Finance (No.2) Act, 2009 w.e.f. 01-04-2010 inserted clause (viii) to section 56(2) providing that: “income by way of interest received on compensation or on enhanced compensation referred to in sub-section (1) of section 145B” shall be chargeable to income-tax under the head “Income from other sources”. Section 145B(1) provides that: “Notwithstanding anything to the contrary contained in section 145, the interest received by an assessee on any compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the previous year in which it is received”. Thus it is palpable that post the decision in Ghanshyam (supra), a statutory amendment has been carried out providing that income by way of interest received on compensation or on enhanced compensation shall be chargeable to income-tax under the head “Income from other sources”. Interest u/s.28 under the LAA is chargeable to tax, is intact and has not been disturbed in any manner by the Hon’ble Supreme Court in the case of Hari Singh and others [2017 (11) TMI 923 - SUPREME COURT] - Respectfully following judgment of Hon’ble Punjab & Haryana High Court in Manjeet Singh [2015 (12) TMI 1123 - PUNJAB & HARYANA HIGH COURT] along with the statutory amendment carried out to section 56(2) inserting clause (viii) w.e.f. 01-04-2010, it is overt that the ld. CIT(A) has taken an unexceptionable view in the matter pertaining to the A.Y. 2013-14. We, therefore, uphold the same. This ground is not allowed. Addition as long term capital gain on acquisition of land - HELD THAT:- There is complete contrast in the version of the AO and the assessee. Whereas the case of the AO is that the land acquired was situated at Khadgaon, the assessee is contending that it was at Gut No. 11 Vasangaon. In support of such a claim, the assessee has filed certain additional evidence, which has not passed through the eyes either of the AO or the CIT(A). In our considered opinion, it would in the interest of justice, if the impugned order is set aside on this score and the matter is restored to the file of AO for determining as to whether the land acquired was at Khadgaon or Gut No. 11 at Vasangaon in the light of the entire material and thereafter to decide whether it was an agricultural land or a capital asset - Decided in favour of assesse for statistical purposes.
|