TMI Blog2018 (6) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Ghanshyam (HUF) (2009 (7) TMI 12 - SUPREME COURT) there were many decisions of the Hon'ble High Court wherein the year of taxability of enhanced compensation was highly debatable. This judgment of Hon'ble Supreme Court had come after the closure of the financial year 31st March, 2009. Thus, at the time of filing of return of income assessee did have a bonafide belief and therefore, we do not find any infirmity in the order of the CIT (A) in deleting the penalty. Accordingly, the appeal filed by the Revenue is dismissed. - I.T.A. No.1165/DEL/2016 And CO No. 112/Del/2018 - - - Dated:- 25-6-2018 - SHRI G.D. AGRAWAL, PRESIDENT AND SHRI AMIT SHUKLA, JUDICIAL MEMBER For The Appellant : Shri Amit Jain, Sr.D.R. Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich exemption was claimed. Regarding the receipt of enhanced compensation, the assessee has given the detailed note as to how the enhanced compensation was received by the assessee as a 1/3 owner of the property. In sum and substance, it was contended that the property belonging to the three coowners was acquired by DMRC u/s.4 of Land Acquisition Act and the declaration u/s.6 was issued on 17.05.2006. Consequent to this, award was passed. 1/3rd share of the said award was duly disclosed in the Income Tax return for the Assessment Year 2007-08. Against the quantum of said award, the assessee had went to the Hon'ble Delhi High Court, vide its order dated 16th February, 2009, whereby the Hon ble Court ordered the release of 50% of the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts, ld. CIT (A) has deleted the penalty on the ground that the issue of taxability of compensation and enhanced compensation on acquisition of land was a debatable issue and the same get settled only by Hon'ble Supreme Court in the case of CIT vs. Ghanshyam (HUF), reported in 35 ITR 1 (SC), wherein the controversy of the year of taxability of enhanced compensation was settled. He further noted that Hon'ble Delhi High Court had stayed the operation of the award of LAC and matter was still not finalize though the assessee had received the amount of ₹ 45,46,473/- on account of enhanced compensation. Even the LAC had not deducted tax while releasing the enhanced tax in view of the direction of the Hon'ble Delhi High Court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved the amount of ₹ 45,46,473/- on 03.02.2009 on the basis of direction by the Hon'ble High Court, but later on stayed, then at the time of finalizing the return of income, the assessee was under a bona f ide belief that such compensation was only on inchoate right due to pending litigation in High Court and hence it is not taxable. At that time, there were many decisions of the Hon'ble High Court wherein it was held that no income by way of enhanced compensation accrues to the assessee on the date of award if it is in dispute. Thus, under these facts penalty has rightly been deleted by Ld. CIT (A). 7. After considering the rival submissions and on perusal of the relevant material placed on record and the finding given in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t source. It was based on these circumstances that the assessee had not shown any income under the head Long Term Capital Gain . Thus, it can be inferred that the assessee was under a bona f ide impression that once the Hon'ble Delhi High Court has stayed the operation of the LAC s award, the same cannot be brought to tax under the head capital gain under the relevant year. Apart from that the investment in the NABARD bond was also duly disclosed in the return of income and for which the assessee had duly furnished the document for such a claim of exemption though made by way of revised computation of income. Thus, the assessee at the first instance has not offered the enhanced compensation amount as Long Term Capital Gain under a bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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