TMI Blog2019 (4) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO treating the interest received by them u/s 28 of the LAA,1894, as compensation following the proposition laid down by the apex court in GHANSHYAM (HUF) [2009 (7) TMI 12 - SUPREME COURT] . We set aside the order passed by the ld. Pr. CIT u/s 263. - Decided in favour of assessee - ITA No. 567/CHD/2018 - - - Dated:- 18-1-2019 - Sh. Sanjay Garg, Judicial Member And Smt. Annapurna Gupta, Accountant Member For the Assessee : Shri Tej Mohan Singh For the Revenue : Shri Ashish Gupta, CIT-DR ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against the order passed by the Principal Commissioner of Income Tax, Hisar [in short referred to as Pr.CIT] dated 21.02.2018 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Supreme Court vide their order dated 18.12.2014. The ld. Pr. CIT, therefore, noted that the issue of taxability of interest awarded u/s 28 of the L.A. Act, 1894 had become final. He, therefore, confronted the assessee as to why the assessment order passed in the present case was not erroneous since the AO had not subjected the same to tax. Detailed reply was filed by the assessee, reproduced at para 3 of the order after considering which the ld. Pr. CIT held that the interest received u/s 28 of the L.A. Act, 1894 was taxable as in view of the amended provisions of Section 56 sub-section (2) sub-clause (viii), 57(iv)and Section 145A(b) of the Act and in view of the larger Bench decision of the Apex Court in the case of Dr. Shamlal N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment with the direction to add 50% of interest income to the assessed income of the assessee. 3. During the course of hearing before us, ld. counsel for the assessee pointed out that subsequent to the decision passed by the Hon'ble jurisdictional High Court in the case of Naresh Jain (supra),which was heavily relied upon by the ld. Pr. CIT in his order for stating that the proposition laid down by the Apex Court in the case of Ghanshyam, HUF stood overruled, and that interest u/s 28 was liable to tax as 'income from other sources', the Hon'ble Apex Court had categorically reiterated its decision rendered in the case of Ghanshyam, HUF in the case of Union of India Ors. Vs Hari Singh Ors. in CA No. 15041/2017 dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Acquisition Act, 1894 was in the nature of compensation in its latest decision in the case of Hari Singh (supra). The relevant findings of the ITAT at para 8 to 10 of the order are as under : 8. Having heard the rival contentions. We find merit in the contention of the ld. counsel for the assessee. Undoubtedly the ld. Pr. CIT had heavily relied on the decision of the jurisdictional High Court in the case of Manjit Singh (supra) and more specifically in the case of Naresh Jain to hold that the proposition laid down by the Apex Court in the case of Ghanshyam, HUF that interest received u/s 28 of the Land Acquisition Act, 1894 was part of the enhanced compensation, was not good law. As rightly pointed out by the ld. counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a vis interest received u/s 28 of the LAA,1894 be kept in mind to ascertain whether the interest received amounts to compensation or not. The relevant findings of the Hon'ble Supreme Court in this regard are as under : We find force in the submission of the learned Additional Solicitor General insofar as the challenge to the direction given to the Land Acquisition Collector to determine as to whether the land in question is agricultural land or not. Since the Land Acquisition Collector had . already deducted tax at source and deposited with the Income Tax Department, in such circumstances, better course of action, which is in consonance with the provisions of Income Tax Act , is for the respondents to approach the concerned Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax, Faridabad v. Ghanshyam (HUF )' [2009 (8) SCC 412] in order to ascertain whether the interest given under the said provision amounts to compensation or not. (3) The direction to refund the amount of Tax Deducted at Source (TDS) to the Land Acquisition Collector is, accordingly, set aside. However, in those cases where the amount has already been refunded, no interference is called for and it will be for the Income Tax Department to proceed in accordance with the provisions of Income Tax Act . (4) Where such notices have not already been issued or assessments have not already been made, if such an action is taken within a period of two months from today, issue of limitation would not come in the way of the Income Tax D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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