9911796707
TMI Blog2020 (10) TMI 881X X X X Extracts X X X X X X X X Extracts X X X X ..... ts and Rs. 47, 32, 420/-, the interest received on compensation in respect of agricultural land. 2. Brief facts of the case are that the appellant is an agriculturist. For the assessment year 2014-15 he has filed return of income on 18.03.2015 declaring income at Rs. 1,71,200/- towards income from House property along with the agricultural income of Rs. 94,64,870/- as interest on compensation from state Government, DRO-cum- LAC, Gurgaon on agricultural land acquired by Haryana Government and pursuant to the notification for acquiring the land issued in the year 2001-02, assessee received the compensation along with interest in the year 2013-14. Assessee treated the interest on compensation as additional compensation and shown as exempt inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case of the a assessee in view of the decision of the Hon'ble Punjab and Haryana High Court in the case of Jagmal Singh vs. state of Haryana by order dated 2/2/2016 and also the amendment of section 145-A (b) of the Act from April 2010. 6. In respect of the addition of Rs. 85 Lacs which the assessee claims to have obtained by way of loan from Sh. Charan Singh, Dharam Singh and Bishamber Dayal, Ld. CIT(A) observed that all these three persons had bank accounts, there were regular transactions reflected therein, there was no explanation from the assessee as to why cash loan was taken from these three persons when they could have easily given loan by cheque and more particularly when the assessee was expecting to receive the compensatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank statements of the creditors. Ld. AR further submitted that the said amount of loan was subsequently repaid through the banking channels and such fact is evident from the bank statement of the assessee. 9. Per contra, it is the submission of the Ld. DR that the reason for selection of the case for scrutiny through CASS was stated to be "low income from other source as compared to larger value of fixed assets and the assessee has also transferred one or more properties during the year", and the expression "low income from other source" takes into its fold the receipt of Rs. 46,21,066/-towards interest on enhanced compensation from the State Government and, therefore, it cannot be said that enquiry of the learned Assessing Officer in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and the decision of the Hon'ble Apex Court in the case of Ghansham (supra) is an authority on the principle that when the Court/Tribunal directs payment of enhanced compensation under Section 23(1A), or Section 23(2) or under Section 28 of the 1894 Act it is on the basis that award of Collector or the Court, under reference, has not compensated the owner for the full value of the property as on date of notification and there is no change insofar as this proposition is concerned. On the aspect of the repayment of loans relating to the addition of Rs. 85 Lacs, Ld. AR submitted that given an opportunity the assessee is ready to furnish the bank statements establishing such a fact. 12. We have gone through the record in the light of the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly settled. In the case of Ghanshyam 315 ITR 1 (SC), the Hon'ble Supreme Court held in unequivocal terms that the additional amount u/s 23(1A), solatium under section 23(2) and interest on enhanced compensation u/s 28 of the Land Acquisition Act form part of enhanced compensation u/s 45(5)(b) and, therefore, is subject to tax u/s 45(5) in the year of receipt. No contrary view is taken by the Supreme Court in the subsequent judgments and as on the date, law is fairly settled that the amount of interest received u/s 28 of the Land Acquisition Act is in the nature of capital gain. It could be seen 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 descript ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... creditors, the correctness of the same is not disputed and it is basing on such statements only Ld. CIT(A) concluded that the creditors have bank accounts and regular transactions are reflected therein. Ld. CIT(A), however, did not take into consideration the submissions made on behalf of the assessee that being not aware of the implications of receiving cash loans under the provisions of the Act, such a course was resorted to, and the fact of repayment by way of banking channels would lend any amount of support to the contention of the assessee about the genuineness of the loan transactions. It is an admitted fact that no bank statement of the assessee was produced before the authorities to demonstrate the fact of repayment. Ld. AR now see ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
