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TMI Blog2007 (2) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 148 and consequent assessment under section 147 of the Income-tax Act. 3. The Assessing Officer found that in respect of certain lands belonging to the assessee which were acquired by HUDA, enhanced compensation on the same has been granted and even the interest on the same has been paid. Since income was not offered for taxation, the Assessing Officer issued notice under section 148 to bring to tax the income arising due to receipt of enhanced compensation. 4. After considering rival submissions, we find that the contention raised by the assessee has no merits. The Assessing Officer was in specific information that the assessee has received enhanced compensation from HUDA in respect of land acquired which land belonged to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The next ground of appeal is against bringing to tax the enhanced compensation itself received during the year. It is the contention of the assessee that since the enhanced compensation received is subject matter of appeal before the Supreme Court and since the amount has not attained finality, the same cannot be brought to tax during the year. 8. After considering the rival submissions we are not inclined to accept the contention of the assessee. The Special Bench of the Tribunal in the case of Padam Prakash (HUF) ( supra) in para 28 held as under :- "28 Having held that as per sub-section (5) of section 45 of the Income-tax Act, enhanced or further enhanced compensation is to be taxed on receipt basis, as per scheme of sub-section (5) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment order it is seen that the Assessing Officer has denied exemption under section 54B on the ground that the agricultural land purchased is not in the name of the assessee but in the name of relatives. The learned counsel for the assessee Shri S.K. Jain submitted that in the case of Babu Ram v. ITO [2004] 90 TTJ 332 (Delhi), the Tribunal held as under :- "17. It is evident from the above that rebate as per section 54B is given to encourage investment in the agricultural land for being used for agricultural purposes. It is intended to safeguard the interest of the agriculturist. If capital gain arises on account of transfer or compulsory acquisition of agricultural land, then rebate is provided if the sale consideration/compensation i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relief was allowed to the assessee for similar investment made in the names of his sons. The learned CIT(A) while allowing relief to the assessee, observed as under : "4...........However, I agree with the learned counsel that since the amount of Rs. 2,30,000 was also invested in the specified asset, the same was also exempted as envisaged under section 54E. It is immaterial whether the investment was made in the name of sons or appellant himself. The crucial point to see here i as to whether the investment was made in the aforesaid assets or not. It was brought to my notice that Rs. 3,30,000 were invested in capital gain units and, therefore, this amount is entitled for exemption under section 54F. I would, therefore, direct the Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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