TMI Blog2020 (1) TMI 1575X X X X Extracts X X X X X X X X Extracts X X X X ..... ction allowable under section 57(iv) - HELD THAT:- The Hon ble Supreme Court in its earlier decision in Ghanshyam (HUF)[ 2009 (7) TMI 12 - SUPREME COURT] had held that the interest received under section 28 of the Land Acquisition Act is part of compensation and the interest received under section 34 of the Land Acquisition Act is to be assessed as other interest in the hands of the recipients. The assessee before us has placed the evidence to the effect that the interest has been received under section 28 of the Land Acquisition Act. The Hon ble Supreme Court had laid down that the ratio in Ghanshyam (HUF) case is to be applied in order to ascertain whether the interest received by the assessee under the said provision amounts to compensa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m-LAC, Government of Haryana, which was claimed as exempt. The Assessing Officer asked the assessee to explain as to why the said interest received on compensation or enhanced compensation should not be taxed as income from other sources and also intimated that deduction of sum equal to 50% was allowable under section 57(iv) of the Income Tax Act, 1961 (in short the Act ). The assessee filed explanation in this regard. The Assessing Officer was of the view that where the tax has also been deducted at source and in view of the decision of the Hon ble Punjab Haryana High Court, the interest received on compensation or enhanced compensation shall be deemed to be income of the assessee in the year of receipt, subject to deduction of 50% unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon ble Apex Court in Ghyanshyam (HUF) had held that element of interest awarded under section 28 of the Land Acquisition Act is to be taxed as income from other sources under section 56 of the Act in the year of receipt. It was pointed out to the Ld. DR for the Revenue that vide para 19, the Hon ble High Court have concluded by holding as under:- 19. It may also be noticed that as regards the claim of the assessee based on provisions of section 10(37) and 57(iv) of the Act is concerned, the issue requires examination based on factual matrix and therefore, the petitioners have alternative remedy to plead and claim the benefit thereof before the Assessing Officer in accordance with law. 7. The Ld. AR for the assessee stressed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Land Acquisition Act and the law laid down by this Court in Commissioner of Income Tax, Faridabad vs Ghanshyam (HUF) [2009 (8) SCC 412] in order to ascertain whether the interest given under the said provision amounts to compensation or not. 10. The Hon ble Supreme Court in its earlier decision in Ghanshyam (HUF)(supra) had held that the interest received under section 28 of the Land Acquisition Act is part of compensation and the interest received under section 34 of the Land Acquisition Act is to be assessed as other interest in the hands of the recipients. The assessee before us has placed the evidence to the effect that the interest has been received under section 28 of the Land Acquisition Act. The Hon ble Supreme Court had lai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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