TMI Blog2021 (4) TMI 494X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot be taxed as income unless it is in the nature of Revenue receipt or specifically brought within the ambit of income by way of specific provision of the Income Tax Act. Thus, the interest received on compensation to the assessee is nothing but a capital receipt and the addition is against the law. From the perusal of the order of the CIT(A), it can be seen that the CIT(A) has not given a separate finding as to why the Assessing Officer is justified in making the addition. This issue has been decided in case of Union of India Vs. Hari Singh [ 2017 (11) TMI 923 - SUPREME COURT ] wherein it is held that on agricultural Land no tax is payable when the compensation/enhanced compensation is received by the assessee as their land were agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, that a capital receipt, unless specifically taxable under section 45 under the head Capital Gain, in principle, is outside the scope of income chargeable to tax and a receipt cannot be taxed as income unless it is in the nature of a revenue receipt or is specifically brought within ambit of income by way of specific provisions of the Income Tax Act. In view of the facts state above, the interest received on compensation to the asses see is nothing but a capital receipt. In view of above the reopening of the assessment u/s 147 is against law. Hence, the assessment proceedings initiating ultra vires and be quashed. 3. Notice issued is against law and facts of the case, hence, be quashed. 4. It has been held by Hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that the Hon'ble Supreme Court in case of CIT Vs. Ghanshyam Das (HUF) 315 ITR 1, held that interest awarded u/s 28 of the Land Acquisition Act is a capital receipt and the same is an accretion to the value of compensation and hence it is part and parcel of compensation. Thus, taxability of such interest is of capital nature and should be included to consideration received for the purpose of computation of capital gain u/s 45 of the Income Tax Act, 1961. Thus, the Ld. AR submitted that capital receipt unless specifically taxable u/s 45 under the head capital gain, in principle, is outside the scope of income chargeable to tax and cannot be ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd, it is humbly submitted that the assesse has not supplied the copy of the judgment or the citation during the hearing. However, the undersigned has found the case of UOI vs Hari Singh dated 15.09.2017 in Appeal No. 15041 of 2017 arising out of SLP No. 28069 of 2010 dated 15.09.2017. Also, it is pertinent to mention here that the assessee has taken upon the plea of this judgment for the first time during the hearing and didn't mention about the same in grounds of appeal anywhere, in fact in ground of appeal the Ld. Counsel referred to the SC judgment of Ghanshyam Das HUF which pertains to judgment of 2009 (which is countered separately at the end of submission). However, on detailed analysis of the judgment referred by a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al gain, in principle, is outside the scope of income chargeable to tax and cannot be taxed as income unless it is in the nature of Revenue receipt or specifically brought within the ambit of income by way of specific provision of the Income Tax Act. Thus, the interest received on compensation to the assessee is nothing but a capital receipt and the addition is against the law. From the perusal of the order of the CIT(A), it can be seen that the CIT(A) has not given a separate finding as to why the Assessing Officer is justified in making the addition. This issue has been decided by the Hon ble Apex Court in case of Union of India Vs. Hari Singh (Civil Appeal No. 15041/2017 order dated 15th September 2017) wherein it is held that on agricul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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