SWARANJIT KAUR,MOHALI vs. ITO, W-6(3), MOHALI

आदेश/Order

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the assessee against the order dated 16.01.2018 of the Commissioner of Income Tax (Appeals)-2, Chandigarh [hereinafter referred to as CIT(A)].

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assessment year 2011-12, wherein, it was held by the Tribunal that the

interest received on enhanced compensation is to be treated as part of the

compensation and, as such, was not exigible to taxation. The relevant part

of the finding of the Tribunal (para 6) are reproduced herein under:-

“6. We have considered the rival submissions of the Ld. Representatives of the assessee. So far as the issue as to the taxability of interest received on enhanced compensation u/s 28 of the Land Acquisition Act is cornered, the same is squarely covered by the decision of this Tribunal in the group of cases with lead case in ‘Shri Satbir Vs. ITO & others’ in ITA Nos. 1413 to 1415/Chd/2016 vide order dated 9.7.2018, another group of cases with lead case in ‘ITO Vs. Sh. Nachhattar Singh & Others’ in M.A. Nos. 61/Chd/2014 (in ITA Nos. 564/Chd/2010) order dated 7.2.2018 and also in the case of ‘Som Nath, Yamunanagar Vs. ITO’ in ITA No. 552/Chd/2016 order dated 11.7.2018, wherein, the Tribunal after considering the decision of the Hon'ble Supreme Court in the case of ‘CIT Vs. Ghanshyam (HUF)(supra) , and the decision of the Hon'ble Punjab & Haryana High Court in the case of ‘Manjeet Singh (HUF) Karta Manjeet Singh Vs. UOI’ in CWP No. 15506 of 2013 dated 14.01.2014 and further decision of the Hon'ble Supreme Court in ‘UOI Vs. Hari Singh and others in Civil appeal No. 1504 of 2017 dated 15.9.2017 and another decision of the Hon'ble Supreme Court in ‘CIT Vs. Chet Ram (HUF)’ dated 12.9.2017 in Civil appeal No. 13053/2017 has held that that the interest received by an assessee on compulsory acquisition of agricultural land u/s 28 of the Land Acquisition Act, is to be treated as part of the compensation and further that the compensation being exempt u/s 10(37) of the Act is not exigible to the tax.”

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clear that the entire interest was received by the assessee under the

provisions of section 28 of the Land Acquisition Act or part of the same is

also received under the provisions of section 34 of the Land Acquisition

Act.

nature of interest received by the assessee to the file of the Assessing

officer. If the same is received as per the provisions of section 28 of the

Act, then, in the light of the decision of the Tribunal referred to above,

the same will not be liable for taxation, however, if the same is found to

be received as per the provisions of 34 of the Act, the Assessing officer

will decide the taxability after hearing the Ld. Counsel for the assessee on

this issue.

In the result, the appeal of the assessee is treated as partly allowed.

Order dictated and pronounced in the Open Court immediately on completion of hearing on 16.12.2018.

Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member

Dated : 16.12.2018 “आर.के.”

आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

ITA No. 425/Chd/2018- Swaranjit Kaur, Mohali 4

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar