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TMI Blog2017 (12) TMI 1792X X X X Extracts X X X X X X X X Extracts X X X X ..... No.122/CIT(A)-11/2016-17 for the above mentioned Assessment Year is contrary to law, facts, and in the circumstances of the case. 2. The CIT (Appeals) erred in dismissing the grounds challenging the validity of the re-assessment completed u/s 143(3) r/w section 147 of the-1- Act without assigning proper reasons and justification and ought to have appreciated that the order of re-assessment was passed out of time, (invalid, passed without jurisdiction and not sustainable both on facts and in law. 3. The CIT (Appeals) erred in confirming the taxability of interest on enhanced compensation for compulsory acquisition of agricultural lands amounting to Rs. 77,57,030/- on the application of section 56(2)(viii) of the Act in the computation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in admitting the taxable total income at Rs. 52,36,190/- including income from capital gains at Rs. 46,73,137/-. Later, the assessee filed another return on 04.03.2016 admitting the taxable total income at Rs. 5,63,050/- withdrawing the income originally admitted under the head 'capital gains'. 3.1 However, the Income Tax Officer, Corporate Ward 3(2), Chennai vide his re-assessment order dated 23.03.2016 u/s 143(3) r/w section 147 of the Act had brought to tax Rs. 38,78,5151- u/s 56(2)(viii) r.w section 57(iv) of the Act in the computation of taxable total income. The assessee received total compensation of Rs. 2,57,93,257/- including interest on compulsory acquisition of agricultural property. Out of this, interest was Rs. 77,57,030/-. Ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of immovable property is a revenue receipt and it is to be taxed and cannot be exempted u/s.10(37) of the Act and it cannot be considered as a part of consideration received in respect of agricultural land specified us.2(14)(iv) of the Act. This view of myself is fortified by the following judgements:- A. Kamail Singh v. State of Haryana* [2009] 184 Taxman 257 (Puni. & Har.) "Section 1 94A of the Income-tax Act, 1961 - Deduction of tax at source Interest other than interest on securities - Whether interest on delayed payment of enhanced compensation in respect of acqisition of immovable property is revenue receipt exigible to tax under section 4 and, therefore, is liable to deduction of tax at source under section 194A- Held, yes Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and Acquisition of Immovable Property Act is income taxable under the income-tax Act - Held, yes." C. Bikram Singh v. Land Acguisitioncol1ector [1996] 89 Taxman 119 (SC) "Section 4 read with section 2(28A), of the Income-tax Act, 1961 - Income - Assessable as - Whether interest received on delayed payment of compensation for compulsory acquisition determined under section 28 or 31 of the Land Acquisition Act, 1894 is a revenue receipt and, therefore, exigible to tax - Held, yes Section 2(28A) of the Income-tax Act, 1 91 - Interest - Meaning of - Whether amended definition of 'interest' was iirtended to make revenue receipt of interest on delayed payment of compensation from non-taxable - Held, no In my opinion, Ld.CIT(A) has rig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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