JAGPAL,GURUGRAM vs. PR. COMMISSIONER OF INCOME TAX, FARIDABAD

ITA 2092/DEL/2024Status: DisposedITAT Delhi16 January 2026AY 2018-19Bench: SHRI ANUBHAV SHARMA, JUDICIAL MEMBER, SHRI NAVEEN CHANDRA (Accountant Member)1 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that interest received on enhanced compensation under Section 28 of the Land Acquisition Act is taxable as 'income from other sources' under Section 56(2)(viii) of the Income Tax Act, following amendments made in 2010. The assessee's claim for exemption under Section 10(37) was found unsustainable as it pertains to compensation, not interest.

What were the facts?

The assessee received interest of Rs 82,88,672/- on enhanced compensation for compulsory acquisition of land. The Assessing Officer (AO) accepted the assessee's claim of exemption for this interest. However, the Principal Commissioner of Income Tax (PCIT) invoked revisional powers under Section 263, holding the AO's assessment order to be erroneous and prejudicial to revenue.

What were the issues?

The primary issue was whether interest received on enhanced compensation for land acquisition is taxable as income from other sources, especially after the 2010 amendments to the Income Tax Act, or if it is exempt. The secondary issue was whether the PCIT correctly exercised revisional powers under Section 263.

Which sections of the Income-tax Act were involved?

Section 263,Section 56(2)(viii),Section 145B(1),Section 10(37),Section 28

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Income Tax Appellate Tribunal, DELHI ‘C’ BENCH,

Before: SHRI ANUBHAV SHARMA, & SHRI NAVEEN CHANDRA

For Respondent: Shri D.S. Sidhu, CIT-DR
Hearing: 26.11.2025Pronounced: 16.01.2026

PER NAVEEN CHANDRA, AM :-

This appeal by the assessee is directed against the order of the ld.

ld. PCIT, Faridabad dated 14.03.2024 pertaining to A.Y 2018-19. 2. None appeared for and on behalf of the assessee. The assessee

however, has submitted a written submission alongwith a Paper book

incorporating documents and submissions made before the lower

authorities on the issue at hand. We decided to proceed with the assistance of the ld. DR. Therefore, the ld. DR was heard at length and the case records were carefully perused.

ITA No. 2092/DEL/2024 [A.Y 2018-19] ld. PCIT erred in exercising juri iction u/s 263 of the Income-tax Act,

1961 [the Act, fo

The order continues below.

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