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2023 (1) TMI 824 - AT - Income TaxInterest received on enhanced compensation u/s 28 of the Land Acquisition Act, 1894 - whether it partakes nature of enhanced compensation and is exempt from tax under Section 10 (37) ? - AO taking into consideration the provision of sub-section (1) of Section 145B of the Act read with section 56(2)(viii) was of the view that interest part of the enhanced compensation was taxable and further extending the benefit of Section 54(4) of the Act of deduction of 50% proposed additions - HELD THAT:- In the case where there is conflict of views between different High Courts, ITO must follow the decision of the High Court within whose jurisdiction he is functioning - Hon’ble Rajasthan High Court in the case of CIT -vs.- Sunil Kumar [1994 (7) TMI 42 - RAJASTHAN HIGH COURT] held that the decision of the Jurisdictional High Court is binding on the Income tax Authorities and the Tribunal within the jurisdiction of the Court and the contrary decision of another High Court is not relevant, and that a point decided by the Jurisdictional High Court can no longer be considered to be a debatable issue. Then in the case of CIT -vs.- Smt. Aruna Luthra [2001 (8) TMI 84 - PUNJAB AND HARYANA HIGH COURT] the Full bench of the Hon’ble Punjab & Haryana High Court has held that once the jurisdictional High Court or Supreme Court decides a particular issue, the judgment of jurisdictional High Court/Supreme Court would relate back to the date when particular section was inserted in the Act. Coming to the claim of assessee based on the basis of judgment of Hon'ble Supreme Court of India in CIT Vs. Ghanshyam (HUF) [2009 (7) TMI 12 - SUPREME COURT] it is pertinent to mention that the same was of 16.07.2009 however, subsequent amendments in the Act have been taken note by Hon’ble Punjab and Haryana High Court in the judgment of Mehendra Pal Narang V. CBDT [2020 (3) TMI 1115 - PUNJAB AND HARYANA HIGH COURT] and which has been thoroughly relied by the Ld. Tax authorities below. CIT(A) has also taken into consideration the aforesaid observations of Hon’ble P&H High Court and specifically observed that “the Hon’ble High Court had considered the decision of the Hon’ble Apex Court in the case Ghanshyam (HUF) 2009 (7) TMI 12 - SUPREME COURT] - The SLP filed by the assessee had been dismissed by Hon’ble Apex Court in [2021 (3) TMI 1399 - SC ORDER] - The decision of Hon’ble Jurisdictional High Court on similar issue is wholly binding on me. Hence, it is held that interest received on enhanced compensation is taxable u/s 56(2)(viii) of the Act.” The bench is of considered opinion that the ld Tax Authorities Below have not fallen in any error in following the judgment of jurisdictional High Court. That being so, there is no merit in the grounds of appeal, therefore, appeal stands dismissed.
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