MATO,PANCHKULA vs. INCOME TAX OFFICER, WARD -1, PANCHKULA, PANCHKULA

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ITA 933/CHANDI/2026Status: DisposedITAT Chandigarh09 July 2026AY 2017-182 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal followed a coordinate bench's decision, holding that 50% of the interest on enhanced compensation is taxable. The Assessing Officer's action was found to be correct.

What were the facts?

The assessee received interest on enhanced compensation under the Land Acquisition Act. The Assessing Officer taxed 50% of this interest under Section 56(2)(viii) of the Income Tax Act, a view upheld by the CIT(A).

What were the issues?

The primary issue was the taxability of interest received on enhanced compensation. Specifically, whether 50% of such interest is taxable under Section 56(2)(viii).

Which sections of the Income-tax Act were involved?

Section 56(2)(viii),Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH HYBRID HEARING HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपीलसं./ ITA No.933/CHANDI/2026 (िनधा�रणवष� / Assessment Year: 2017-18) Mato ITO Ward – 1 बनाम/ Vs. H. No. 354, Chandimandir Tanda Panchkula, Haryana Kalka, Panchkula, Haryana – 134107 �ायीलेखासं./जीआइआरसं./PAN/GIR No. BSBPM-4280-N (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Ravinder Krishan (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Dr. Ranjit Kaur (Addl. CIT) - Ld. Sr. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 08-07-2026 घोषणाकीतारीख /Date of Pronouncement 09-07-2026 : आदेश / O R D E R 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 24.10.2025 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 147 of the Act on 29.03.2022. 2. During hearing, it emerges that the sole issue that fall for my consideration is taxability of interest on enhanced compensation as received by the assessee u/s 28 of Land Acquisition Act. The Ld. AO, considering various judicial decisions, brought to tax 50% of the interest so received by the assessee u/s 56(2)(viii). The Ld. CIT(A)

endorsed the view of Ld. AO against which the assessee is in further appeal before Tribunal. 3. I find that this issue has been adjudicated by coordinate bench of Chandigarh Tribunal in favor of the revenue in the case of Ajay Kumar & Others Vs. ITO (ITA No. 463/Chd/2023 and others dated 11.11.2025) which position could not be controverted by Ld. AR. Since the facts of the present case are identical to those considered by the Coordinate Bench in the aforesaid decision, I respectfully follow the same and hold that the Assessing Officer has rightly taxed 50% of the interest received by the assessee. Accordingly, I find no infirmity in the order of lower authorities. 4. The appeal stands dismissed. Order pronounced on 09th July, 2026. -Sd- (MANOJ KUMAR AGGARWAL) ACCOUNTANT MEMBER AS Dated: 09/07/2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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