TMI Blog2019 (8) TMI 1424X X X X Extracts X X X X X X X X Extracts X X X X ..... same has again held that interest receipt on enhanced compensation u/s 28 of the Land Acquisition Act is in the nature of compensation. - Decided in favour of assessee - ITA No. 5367/DEL/2018, 1424/DEL/2018, 1425/DEL/2018, 214/DEL/2018, 2414/DEL/2018, 2415/DEL/2018, 2888/DEL/2018, 3564/DEL/2018, 1707/DEL/2018, 5423/DEL/2017, 5368/DEL/2018, 212/DEL/2018 - - - Dated:- 14-8-2019 - Shri T.S. Kapoor, Accountant Member, And Shri Amit Shukla, Judicial Member, Appellant by: Shri Sudhir Yadav Respondent by: Shri Mithun Sethy ORDER PER BENCH, This bunch of thirteen appeals has been filed by different assessees against the separate orders of Ld. CIT(A). 2. The Ld. AR, at the outset, submitted that all these appeals involve identical issue of taxability of receipt of interest on enhanced compensation, which was received by assessees on account of acquisition of their lands. The ld. AR submitted that the Hon ble Supreme Court in the case of Ghanshyam (HUF) has already settled this issue, and has already held that interest received by assessees u/s 28 of Land Acquisition Act, is a part of compensation and is not liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nhanced compensation u/s 28 of the Land Acquisition Act is in the nature of compensation. We further find that Hon ble Delhi Tribunal vide order dated 09/08/2019 in the case of Shri Manish Yadav in ITA No.3836/Del/2016 has taken cognisance of the order of the Hon ble Delhi Tribunal in the case of Shri Opinder Sing Virk and has dismissed the appeal of the Revenue by holding as under:- 4. We have heard rival parties and have gone through the material placed on record. We find that it is an undisputed fact that assessee has received interest u/s 28 of Land Acquisition Act, 1894. The Hon ble Apex Court in the case of CIT vs Ghanshyam(HUF) 182 taxman 368 has clearly held that interest received by the assessee in view of section 28 of Land Acquisition Act 1894 is part of the compensation and therefore was not taxable. The Hon ble Delhi Bench of the Tribunal in the case of Shri Opinder Singh Virk, vide order dated 14/03/2019 has dealt with the decision of the Hon ble Supreme Court in the case of Chet Ram (HUF) as well as the case laws of Ghanshyamdas and after analysing the same has again held that interest receipt on enhanced compensation u/s 28 of the Land Acquisition Act is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court directed the AO in the case of Hari Singh (supra) that after examining the facts to apply the provisions contained in the Income-tax Act with a specific reference to the agricultural land stating that in case if it is found that the compensation was received in respect of the agricultural land, the tax deposited with the Income-tax Department shall be refunded to these depositors. 10. In this matter, what was acquired by the Government was an agricultural land and such a fact is well evident from the assessment order itself . As a matter of fact, learned AO, by granting exemption under section 10(37) of the Act, refunded a sum of ₹ 1,22,01,723/-. Only question is whether the interest received under section 28 of the Act assumes the character of enhanced compensation and consequently it is exempt under section 10(37) of the Act. In view of the decisions of the Hon ble Supreme Court referred to above, we do not have any doubt in our mind as to the law in this aspect and while respectfully following the ratio laid down by the Hon ble Supreme Court in the case of Ghanshyam (supra) and Hari Singh (supra) above, direct the ld. AO to refund the TDS amount that was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition Act, 1894 was part of the enhanced compensation, was not good law. As rightly pointed out by the Id. counsel for the assessee the Hon'ble Apex Court has reiterated the aforesaid proposition in the case of Hari Singh (supra) subsequent to the decision passed by the Hon'ble High Court in the case of Naresh Jain (supra) .We have gone through the order of the Apex Court in the case of Hari Singh and find that the Union of India had come before the Supreme Court against the decision of the High Court in writ petition filed by the asseseees before the High Court. The issue before the High Court was that the assessees had received enhanced compensation on which tax had been deducted at source as per the provision of Section 194LA of the Act. The assessee had contended that no tax was deductible on the same as land was agricultural land and without examining these facts, taxes had been deducted at source. The Hon'ble High Court had directed refund of the taxes to the assessees and had directed the Land Acquisition Officer/Collector to examine whether their lands were agricultural or not and decide whether taxes were liable to be deducted therefrom as per the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agricultural land, the tax deposited with the Income Tax Department shall be refunded to these respondents. (2) While determining as to whether the compensation paid was for agricultural land or not, the Assessing Officer(s) will keep in mind the provisions of Section 28 of the Land Acquisition Act and the law laid down by this Court in 'Commissioner of Income 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 Department. This order is passed having regard to the fact that the present proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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