TMI Blog2018 (3) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 - Shri T. S. Kapoor, Accountant Member And Shri Partha Sarathi Chaudhury, Judicial Member Appellant by : Smt. Manju Thakur, D.R. Respondent by : Shri Swarn Singh, C.A. ORDER Per T. S. Kapoor, A.M. This is an appeal filed by the Revenue against the order of CIT(A), Kanpur dated 29/11/2016 relating to assessment year 2011-12 taking the following grounds of appeal: 1. The Ld. Commissioner of Income Tax (Appeals)-I, Kanpur has erred in law and on facts that the assessee has violated the provision of section 56(2)(viii) of the Income Tax Act, inserted by finance (No.2) Act, 2009 w.e.f. 01.04.2010. 2. The order of the Ld. Commissioner of Income Tax (Appeals)-I, Kanpur has erred in law and on facts that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned A. R. heavily placed his reliance on the order of learned CIT(A) and invited out attention to his detailed findings. 4. We have heard the rival parties and have gone through the material placed on record. We find that the assessee received compensation and also received interest on enhanced compensation which was paid to the assessee keeping in view the provisions of section 28 and 34 of the Land Acquisition Act. The assessee during the assessment proceedings had claimed that capital gain was exempt u/s 10(37) of the Act and the interest received by him in terms of section 28 of the Land Acquisition Act is in the nature of additional compensation and not in the nature of interest and in support of his contention relied on the judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantum of Enhanced Compensation till the Apex Court and the issues get finally resolved after a very long time. In most cases, once the Enhanced Compensation is determined/approved by the Courts [say, the High Court], the amount of such Enhanced Compensation is deposited with the Courts and the owners are permitted to withdraw the same against some security [say, bank guarantee], or even without any security, notwithstanding the fact that the disputes remain pending before the higher courts [say, Apex Court]. In most such cases, the dispute was with regard to the year of taxability of the Enhanced Compensation when such disputed compensation was received by the owner on furnishing security as the amount received is liable to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed hereinabove, Section 23(1A) provides for additional amount. It takes care of increase in the value at the rate of 12 % per annum. Similarly, under Section 23(2) of the 1894 Act there is a provision for solatium which also represents part of enhanced compensation. Similarly, Section 28 empowers the court in its discretion to award interest on the excess amount of compensation over and above what is awarded by the Collector. It Includes additional amount under Section 23(1A) and solatium under Section 23(2) of the said Act. Section 28 of the 1894 Act applies only in respect of the excess amount determined by the court after reference under Section 18 of the 1894 Act. It depends upon the claim, unlike interest under Section 34 which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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