TMI Blog2014 (1) TMI 1320X X X X Extracts X X X X X X X X Extracts X X X X ..... be treated as part of the compensation and therefore, is exempt - interest u/s 34 is towards delay in payment and therefore, the same is to be taxed - the ld. CIT(A) has adjudicated the issue and remitted the matter to the file of Assessing Officer only for verification of the components of interest u/s 28 & 34 – thus , no interference is required in the order of the CIT(A) – matter remitted back ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... serves to be sustained. 2. Whether on facts and circumstances the ld. CIT(A) is justified in directing the Assessing Officer to obtain the details of interest from the appellant and tax the same as per the judgment of the Hon'ble Supreme Court in the case of CIT, Faridabad Vs Ghanshyam (HUF) (315 ITR 1) when the appellant has not given the details and consequently the Ld. CIT(A) has allowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied with the explanation and therefore, interest received on enhanced compensation was added to the income of the assessee. 4. On appeal, it was contended that interest u/s 28 of the Land Acquisition Act, 1894 is to be treated as part of the compensation as per the decision of Hon'ble Supreme Court in case of CIT V. Ghanshyam (HUF), 315 ITR 1 (S.C) and therefore, the same was exempt from tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Interest paid on the excess amount under section 28 of the Land Acquisition Act, 1894, depends upon a claim made by the person whose land is acquired, whereas interest under section 34 is for delay in making payment; it postulates award of interest at 9 per cent, per annum from the date of taking possession only until it is paid or deposited. Interest under section 28 would include within its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mponents of interest u/s 28 34, therefore, no serious interference is required in the order of the ld. CIT(A). We simply send the matter back to the file of Assessing Officer for verifying the components of interest after obtaining details from the assessee and then treat the same as per the decision of Hon'ble Supreme Court in case of CIT V. Ghanshyam (HUF) (supra). 8 In the result, appeal of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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