Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (5) TMI 123 - AT - Income TaxDisallowance of claim of deduction @ 50% u/s 57(iv) - interest received on enhanced compensation - AO disallowed the claim on ground that as the appellant is in the business of real estate, the interest income arising from compulsory acquisition of property is taxable under the head PGBP and not income from other sources - HELD THAT:- Section 56(2)(viii) provides that interest on enhanced compensation has to be taxed under the head “Income from other source. We agree with Assessee that the deduction U/s 57(iv) is to be allowed and the ground on which revenue authorities have disallowed the claim being the assessee engaged in business is of no relevance. Thus, on the basis of the overriding provision of Section 56(2)(viii) read with Section 57(iv) of the Act, we agree that the assessee is entitled to the statutory deduction of 50% u/s 57(iv) of the Act. Hence we set aside the orders of the authorities below and decide the issue in favour of the Assessee.
|