TMI Blog2019 (8) TMI 1423X X X X Extracts X X X X X X X X Extracts X X X X ..... ra). Appeal filed by the Revenue is dismissed. - ITA No. 3836/DEL/2016 [Assessment Year: 2012-13] - - - Dated:- 9-8-2019 - Shri Bhavnesh Saini, Judicial Member, And Shri T.S. Kapoor, Accountant Member, Revenue by Ms. Rinku Singh, Assessee by Shri Kapil Geol, ORDER T. S. Kapoor, This is an appeal filed by the Revenue against the order of Ld. CIT(A), dated 19/04/2016. The Revenue has taken following grounds of appeal:- 1. CIT(A) has erred in deleting the addition of ₹ 96,29,902/- made on the ground of disallowance of 50% interest on compensation/enhanced compensation u/s 56 (2)(viii) of the I.T. Act. CIT(A) has erroneously placed reliance on the decision of Hon ble Supreme Court in the case of Ghanshyam(HUF) delivered on 16.07.2009 as clause (viii) of section 56(2) was inserted by finance act 2009 w.e.f 01.04.2010 according to which income by way of interest received on compensation or enhance compensation refer to in clause (b) of section 145A shall be chargeable under head income from other sources in the year of receipt. Even, the jurisdictional Hon ble Punjab Haryana High Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case law of Manjet Singh (HUF) CIT vs Chet Ram(HUF) decided by Hon ble Punjab Haryana High Court has already been considered in various case decided by various benches of the Tribunal and in this respect specific reliance was placed on order of the Delhi Bench in the case of Opinder Singh Virk, where vide order dated 14/03/2019, Hon ble Tribunal had decided the issue in favour of the assessee. The Ld. AR further placed his reliance on order of Lucknow Tribunal where under similar facts and circumstances vide order dated 07/03/2018, the Tribunal had decided the issue in favour of the assessee. Similarly, reliance was placed on the order of the Hon ble Tribunal of Chandigarh, in the case of Shri Bharat Bhushan vs Pr. CIT in ITA No.597/Chd/2018, where the Hon ble Tribunal after considering the various case laws including the case law of Manjeet Singh(HUF), decided the issue in favour of the assessee. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount shall be brought to tax u/s 45(5) without applying the provisions under 10(37) of the Act, which exempts such receipts from being taxed. It could be noted that Section 45(5) makes no reference to the nature of property that is acquired but it deals with the category of cases which falls in the description of capital assets . However, Section 10(37) exempts specifically an income chargeable under the head capital gains arising from the transfer of agricultural land. It is, therefore, clear that once the Hon ble Supreme 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 ₹ 1,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erroneous. 7. The Id. DR on the other hand, relied on the order of the Id. Pr. CIT. 8. Having heard the rival contentions. We find merit in the contention of the Id. 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 (supra) 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 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 compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll file appropriate returns before the Assessing Officer(s) in respect of Assessment Years in question within a period of two months from today in case they feel that the compensation in respect of land belonging to them which had been acquired was agricultural land, and claim refund of the tax which was deducted at source and deposited with the Income Tax Department. On the filing of these returns, the Assessing Officer(s) shall go into the aforesaid question and wherever it is found that the compensation was received in respect of 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 asid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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