USHA,CHARKHI DADRI vs. INCOME TAX OFFICER, CHARKHI DADRI

ITA 6396/DEL/2026Status: DisposedITAT Delhi17 August 2026AY 2019-209 pages
AI SummaryAllowed

What were the facts?

The assessee's appeal concerns the taxability of the interest component of land acquisition compensation. The lower authorities assessed this interest as income from other sources, invoking specific sections of the Income Tax Act.

What did the Tribunal hold?

The Tribunal held that the interest received under Section 28 of the Land Acquisition Act, 1894, is an accretion to the compensation and not income from other sources. Therefore, it should not be taxed as such.

What were the issues?

The key issue was whether the interest component of land acquisition compensation is taxable as income from other sources or is part of the 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 45(5),Section 56(2)(viii),Section 143(3),Section 263,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: “SMC” NEW DELHI

Before: SHRI SATBEER SINGH GODARA

Hearing: 03.08.2026Pronounced: 03.08.2026

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/250/2025-26/1087385323(1), dated 15.03.2026 involving proceedings under section 147 r.w.s. 144 r.w.s. 144B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s behest. She is accordingly proceeded ex-parte.

2.

Delay of 5 days in filing of the assessee’s instant appeal is condoned in larger interest of justice and in light of Collector, Land & Acquisition vs. Mst. Katiji & Others (1987) 167 ITR 471 (SC).

3.

It emerges during the course of hearing that the sole substantive iss

The order continues below.

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