SANDEEP,SONIPAT vs. INCOME TAX OFFICER WARD-1, SONIPAT

ITA 2392/DEL/2026Status: DisposedITAT Delhi18 September 2026AY 2014-157 pages
AI SummaryAllowed

What were the facts?

The assessee received enhanced interest income from the Land Acquisition Officer on compulsory acquisition of agricultural land. The Assessing Officer (AO) added 50% of this amount to the assessee's income, treating it as taxable interest. The Commissioner (Appeals) upheld this addition.

What did the Tribunal hold?

The Tribunal held that interest received under Section 28 of the Land Acquisition Act is part of the enhanced compensation for agricultural land and is exempt from tax under Section 10(37) of the Income Tax Act, following Supreme Court precedents.

What were the issues?

Whether interest received on enhanced compensation under Section 28 of the Land Acquisition Act is taxable or exempt under Section 10(37) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 10(37),Section 194A,Section 28,Section 148,Section 143(2),Section 142(1),Section 56(2)(viii),Section 57(iv),Section 145A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’: NEW DELHI

For Appellant: Shri Subodh Jain, Advocate, Shri Samyak Jain, CA
For Respondent: Shri Manoj Kumar, Sr. DR
Hearing: 14.07.2026Pronounced: 18.09.2026

PER S.RIFAUR RAHMAN,AM:

1.

This appeal is filed by the assessee against the order passed by the ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [for short ‘ld. CIT (A)] dated 08.01.2026 for the Assessment Year 2014-15. 2. Brief facts of the case are, Assessee has not filed its return of income. Based on the above, assessment was reopened. Based on the information available on AIMS module, the assessee has received cash of 2 Rs.35,33,013/- on account of interest under section 194A of the Income- tax Act, 1961 (for short ‘the Act’). Accordingly notice under section 148 was issued and served on the assessee. Subsequently, assessee filed its return of income as required under section 148 of the Act on 30.10.2021 electronically declaring

The order continues below.

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