BRAHAMPAL SINGH,GURGAON vs. ITO WARD 1(3), GURGAON

ITA 3460/DEL/2019Status: DisposedITAT Delhi18 May 2021AY 2013-147 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest received on enhanced compensation for agricultural land is not taxable. Following a Supreme Court decision, it was ruled that such receipts are capital in nature and not income unless specifically brought to tax.

What were the facts?

The assessee received interest on enhanced compensation for acquired agricultural land. The Assessing Officer and CIT(A) treated this interest as taxable income from other sources, making an addition to the total income.

What were the issues?

Whether interest received on enhanced compensation for agricultural land is taxable as income from other sources under Section 56(2)(viii) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 56(2)(viii),Section 57(iv),Section 145A(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH, ‘SMC-2’: NEW DELHI

Before: SHRI R.K. PANDA

Hearing: 18.05.2021Pronounced: 18.05.2021

PER R.K. PANDA, AM,

This appeal filed by the assessee is directed against the order dated 17.05.2017 of the learned CIT(A)-1, Gurgaon, relating

to AY-2013-14. 2. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 19.10.2013 declaring

total income of Rs.2,62,880/-. During the course of assessment

proceedings vide order sheet entry dated 01.03.2016, the Rs.42,18,086/- being 50% of interest income of Rs.84,36,173/-

received from DRO cum LAC, Gurgaon, may not be brought into tax, keeping in view the amended provisions of Income Tax Act as clause (viii) in sub-section 2 of section 56 introduced by Finance

Act, 2009 effective from the assessment year 2010-11, after

al

The order continues below.

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