JYOTI,PINJORE vs. ITO, WARD 2, PANCHKULA

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ITA 1365/CHANDI/2025Status: DisposedITAT Chandigarh13 May 2026AY 2015-163 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest received on enhanced compensation is taxable under section 56(2)(viii) in the year of receipt and is not exempt under section 10(37). The lower authorities' decision was upheld.

What were the facts?

The assessee received interest on enhanced compensation due to land acquisition. The Assessing Officer taxed 50% of this interest under 'Income from Other Sources', and the CIT(A) confirmed the addition.

What were the issues?

The primary issue was the taxability of interest on enhanced compensation and whether it qualifies for exemption under section 10(37).

Which sections of the Income-tax Act were involved?

Section 56(2)(viii),Section 145B,Section 10(37),Section 250,Section 144,Section 147

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण,च"ीगढ़ "ायपीठ “बी” , च"ीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID MODE "ी लिलत कुमार, "ाियक सद" एवं "ी मनोज कुमार अ"वाल, लेखा सद" BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 1365 /Chd/ 2025 िनधा"रण वष" / Assessment Year : 2015-16 Jyoti बनाम The ITO 148, Village, Manakpur Devi Lal, Ward-2 Pinjore, Haryana-134102 Panchkula "ायी लेखा सं./PAN NO: CAFPJ6462E अपीलाथ"/Appellant ""थ"/Respondent िनधा"रती की ओर से/Assessee by : Smt. Neelam Dhiman, C.A राज" की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 29/04/2026 उदघोषणा की तारीख/Date of Pronouncement : 13/05/2026

आदेश/Order PER LALIET KUMAR, J.M: This appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, dt. 14/02/2025 for the Assessment Year 2015-16 under section 250 of the Income-tax Act, 1961, arising out of the assessment framed under section 144 read with section 147 of the Act.

2.

In the present appeal Assessee has raised the following grounds:

1.

Because AO order dated 11.11.2019 contains no DIN and as per Circular 19 of 2019 that no communication shall be issued by any income tax authority relating to assessment, appeals, orders, statutory or otherwise, exemptions, enquiry, investigation, verification of information, penalty, prosecution, rectification, approval etc. to the assessee or any other person, on or after the 1st day of October, 2019 unless a computer-generated Document Identification Number (DIN) has been allotted and is duly quoted in the body of such communication. So assessment is void ab initio and assessment requested to quashed.

2.

Because interest on enhanced compensation u/s 28 is exempt u/s 10(37) w.r.t to rural agriculture land.

3.

The appellant craves to add, alter or delete any ground of appeal at the time of hearing till appeal disposed off.

3.

Briefly stated, the facts of the case, as emanating from the record, are that the assessee received interest on enhanced compensation on account of acquisition of land. The Assessing Officer treated such interest as taxable under the head “Income from Other Sources” in terms of section 56(2)(viii) read with section 145B of the Act and after allowing statutory deduction under section 57(iv), brought 50% of such interest to tax.

4.

Against the order of the Ld. AO the assessee went in appeal before the Ld. CIT(A). The Ld. CIT(A) confirmed the addition by holding that the interest received under section 28 of the Land Acquisition Act is taxable in the year of receipt and does not qualify for exemption under section 10(37) of the Act.

5.

Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us and has challenged the action of the lower authorities in treating the interest on enhanced compensation as taxable income.

6.

Per contra, the Ld. DR relied on the orders of the lower authorities.

7.

We have heard the rival contentions and perused the material available on the record. At the outset, it is noticed that the issue involved in the present appeal is squarely covered by the decision of the Coordinate 463/Chd/2023, wherein identical issue relating to taxability of interest received on enhanced compensation under section 28 of the Land Acquisition Act has been adjudicated.

7.

1 The Coordinate Bench, after considering the statutory provisions and judicial precedents, including the decisions of the Hon’ble Juri ictional High Court, has categorically held that the interest received on enhanced compensation is taxable under the head “Income from Other Sources” in terms of section 56(2)(viii) of the Act in the year of receipt and is not exempt under section 10(37) of the Act.

7.

2 Order pronounced on 13/05/2026 मनोज कुमार अ"वाल लिलत कुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद"/ ACCOUNTANT MEMBER "ाियक सद" /JUDICIAL MEMBER AG आदेश की "ितिलिप अ"ेिषत/ Copy of the order forwarded to : 1. अपीलाथ"/ The Appellant

2.

""थ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/

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