DHARMBATI,FARIDABAD vs. INCOME TAX INSPECTOR FARIDABAD, FARIDABAD

ITA 5672/DEL/2025Status: DisposedITAT Delhi05 March 2026AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI M. BALAGANESH (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the interest under Section 28 of the Land Acquisition Act is an integral part of enhanced compensation and is exempt under Section 10(37) of the Income Tax Act, following the Supreme Court's decision in CIT vs. Ghanshyam HUF. The PCIT's order, based solely on an audit objection and overlooking Supreme Court precedents, was deemed unsustainable.

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 under Section 57(iv) read with Section 56(1)(a) and Section 145A(b) of the Income Tax Act.

What were the issues?

Whether interest received on land acquisition compensation under Section 28 of the Land Acquisition Act is taxable as income from other sources or exempt as part of enhanced compensation. Whether an order based solely on an audit objection can be considered erroneous and prejudicial to revenue.

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 143(3)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(14)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH

For Respondent: Ms. Monika Singh, CIT(DR)
Hearing: 05.03.2026Pronounced: 05.03.2026

PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2018-19, 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/250/2025-26/1077406804(1), dated 23.06.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’). Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex-parte.

2.

It emerges during the course of hearing that the sole substantive issue between the parties is that of correctness of the learned lower authorities’ action assessing the assessee’s interest component of land acquisition compensation u/s 28 of the Land Acquisition Act,

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 28

All 1,686 judgments and leading authorities on Section 28 →

Recent GST High Court judgments

Search GST case law →