TMI Blog2022 (7) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... he said issue has been considered by the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam HUF [ 2009 (7) TMI 12 - SUPREME COURT] held that the interest paid on the excess amount u/s 28 of Land Acquisition Act, 1894, depends upon a claim by the person whose land is acquired, where as interest u/s 34 of Land Acquisition Act is for delay in making payment. Interest u/s 28 of Land Acquisition Act is a part of enhanced value of land which is not the case in the matter of payment of interest u/s 34 of the Land Acquisition Act. Also see Hari Singh Ors. [ 2017 (11) TMI 923 - SUPREME COURT] - CIT(A) has committed no error and there is no infirmity in allowing the Appeal of the assessee. - I.T.A. No. 5084/DEL/2019 - - - Dated:- 6-7-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (A). The Department of Revenue has filed the Appeal on following grounds:- 1. On the facts and circumstances of the case, the Learned CIT (A) erred in law in deleting the addition in view of decision pronounced by Jurisdictional Hon ble High Court in the case of Manjeet Singh HUF Vs CIT of CWP No 15506 of 2013 dated 14.01.2014, Naresh Kumar Jain and others Vs State of Haryana and others of CWP No 14728 of 2017 dated 12/07/2017 and Puneet Singh Vs Commissioner of Income Tax, Karnal in ITA-132- 2018 (O M) dated 19.11.2018. The Hon ble Punjab and Haryana High Court has clearly stated that/interest received u/s 28 of Land Acquisition Act, 1894 is taxable u/s 56(2)(viii) r.w.s. 57(iv) and 145A of the Income Tax Act. 2. On the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present Appeal of the Revenue deserves to be dismissed. The Ld. Counsel for the assessee has relied on several judgments of the Hon'ble Supreme Court. 7. We have heard the parties, verified the material on record and gave our thoughtful consideration. The only question arises as to whether interest received u/s 28 of Land Acquisition Act, 1894 is taxable u/s 56(2) (viii) read with Section 57(iv) and 145A of the Income Tax. 8. As per Section 10(37) of the Act, any income chargeable under the head of capital gain arising from transfer of agricultural land by way of compulsory acquisition under the law is exempt from taxation. Further, as per provisions of Section 56(2) (vi) of the Act, income by way of interest received on comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal amount under section 23(1 A) is mandatory. The award of interest under section 28 of the 1894 Act is discretionary. Section 28 applies when the amount originally awarded has been paid or deposited and when the Court awards excess amount. In such cases, interest on that excess amount alone is payable. Section 28 empowers the Court to award interest on the excess amount of compensation awarded by it over the amount awarded by the Collector. This award of interest is not mandatory but is left to the discretion of the Court. Section 28 is applicable only in respect of the excess amount, which is determined by the Court after a reference under section 18 of the 1894 Act. Section 28 does not apply to cases of undue delay in making award of co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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