TMI Blog2010 (12) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... y for the amount received by the assessee - Since the amount of enhanced compensation and interest thereupon is held to be assessable in the asst. yr. 2002-03, in which it is received, the same amount shall not be again included in the other assessment year on protective basis - Decided in favour of the assessee by way of remand to AO - ITA Nos. 2029 to 2032/Del/2008; - - - Dated:- 3-12-2010 - G.E. Veerabhadrappa, C.L. Sethi, JJ. Ashok Pandey for the Appellant ORDER C.L. Sethi, Judicial Member:- 1. All these four appeals, filed by the Revenue, are against a common order dt. 14th March, 2008 passed by the CIT(A) pertaining to the asst. yrs. 1999-2000 to 2002-03. 2. In all these four appeals common and identical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ghanshyam (HUF) (2009) 224 CTR (SC) 522 : (2009) 26 DTR (SC) 129 : (2009) 315 ITR 1 (SC), where the Supreme Court has held that enhanced compensation is liable to be taxed in the year in which the payment was received. The Hon'ble High Court has remanded the matter to the Tribunal to re-examine the matter in the light of the aforesaid judgment of Hon'ble Supreme Court in the case of Ghanshyam (HUF) (supra). Therefore, these appeals are being disposed of afresh by us. 4. Notice of hearing was sent to the assessee fixing the date on 11th Nov., 2010 but nobody for the assessee has appeared. Since the matter is now covered by the decision of Hon'ble Supreme Court and since no one was present for the assessee, we propose to dispose of thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other sources". Similarly, the amount of compensation of Rs. 1,87,06,790 received on 28th March, 2002 in respect of LAC No. 183 of 2000 has been assessed under the head "Capital gain" and the interest of Rs. 94,40,522 received thereupon has been assessed under the head "Income from other sources". Thus, the total capital gain assessed by the AO amounted to Rs. 2,63,56,375 (i.e., Rs. 76,49,585 + Rs. 1,87,06,790). The aggregate interest income assessed under the head "Income from other sources" thus, comes to Rs. 1,12,43,427 (i.e. Rs. 18,02,905 + Rs. 94,40,522). In this manner, the total income was assessed by the AO at Rs. 3,75,99,800. 6. In the return of income filed originally the assessee did not offer the amount of Rs. 76,49,585 bei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 to 2001-02 on protective basis. The protective amount received on account of interest on compensation in asst. yrs. 1999-2000 to 2001-02 is as under:- Asst. yr. Amount 1999-2000 Rs. 20,81,608 2000-01 Rs. 33,63,320 2001-02 Rs. 34,99,440 7. On an appeal, the learned CIT(A) deleted whole of the additions after following the decision of Hon'ble Punjab and Haryana High Court amongst others in the case of CIT vs. Prem Singh (IT Appeal No. 695 of 2005 decided on 16th May, 2007, where the Hon'ble Punjab and Haryana High Court had taken a view that until and unless the compensation on the agricultural land and the interest thereon attain a finality, they cannot be calculated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hanshyam (HUF) (supra). The Hon'ble Supreme Court in the case of CIT vs. Ghanshyam (HUF) (supra) has held and observed as under:- "The scheme of s. 45(5) and s. 155(16) of the IT Act, 1961, is this. Sec. 45(5) was inserted w.e.f. 1st April, 1988, as an overriding provision. Since compensation under the Land Acquisition Act, 1894, arises and is payable in multiple stages, the legislature stepped in and said that as and when the assessee-claimant is in receipt of enhanced compensation it shall be treated as 'deemed income' and taxed on receipt basis. Hence, the year in which enhanced compensation is received is the year of taxability. Consequently, even in cases where pending appeal, the Court/Tribunal/authority before which the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the compensation amount is determined. Interest under s. 28 is a part of the enhanced value of the land, which is not the case in the matter of payment of interest under s. 34." 8. In this judgment, the Hon'ble Supreme Court has distinguished its earlier decision in the case of CIT us. Hindustan Housing and Land Development Trust Ltd. (1986) 58 CTR (SC) 179 : (1986) 161 ITR 524 (SC) with reference to the provision under s. 155(15) providing for refund of excess tax and after this provision, it was found no reason for postponing the liability for the amount received by the assessee. The Hon'ble Supreme Court has taken a view that the additional compensation received by the assessee is to be assessed in the year in which it is received. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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