RAKESH,GURGAON vs. INCOME TAX OFFICER, GURUGRAM

ITA 5707/DEL/2026Status: DisposedITAT Delhi21 September 2026AY 2019-209 pages
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What were the facts?

The assessee received interest component on land acquisition compensation. The lower authorities assessed this interest as income from 'other sources' by invoking specific sections of the Income Tax Act. The assessee contended that this interest is part of enhanced compensation and exempt under Section 10(37).

What did the Tribunal hold?

The Tribunal held that the order of the PCIT was not sustainable. It relied on its previous decision which distinguished the High Court ruling cited by the Revenue, affirming that interest under Section 28 of the Land Acquisition Act is part of enhanced compensation and potentially exempt.

What were the issues?

The primary issue was the taxability of the interest component of land acquisition compensation and whether it should be treated as income from other sources or as part of enhanced compensation exempt under Section 10(37).

Which sections of the Income-tax Act were involved?

Section 28,Section 57(iv),Section 56(1)(a),Section 145A(b),Section 10(37),Section 147,Section 144B,Section 56(2)(viii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI KRINWANT SAHAY

PER SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER:

This assessee’s appeal for assessment year 2019-20, arises against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1087755411(1), dated

ITA 5707/DEL/2026 RAKESH

23.03.

2026 involving proceedings under section 147 r.w.s. 144B of the Inco

The order continues below.

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