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Facts
The assessee filed an appeal for Assessment Year 2016-17 against an addition of Rs. 31,47,416/- to their income. This addition was made during reassessment proceedings under sections 148/147 of the Income Tax Act, 1961, and represented interest income received under Section 28 of the Land Acquisition Act, 1894.
Held
The Tribunal, relying on the jurisdictional High Court's decision in *PCIT v. Inderjit Singh Sodhi HUF*, held that interest income received under Section 28 of the Land Acquisition Act is not exempt and is taxable under the Income Tax Act. Consequently, the assessee's appeal challenging the addition was rejected.
Key Issues
Whether interest income received under Section 28 of the Land Acquisition Act, 1894, is exempt from assessment under the Income Tax Act, 1961.
Sections Cited
Section 250 of Income Tax Act, 1961, Section 148 of Income Tax Act, 1961, Section 147 of Income Tax Act, 1961, Section 28 of Land Acquisition Act, 1894
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI
Before: SHRI SATBEER SINGH GODARA
O R D E R PER SATBEER SINGH GODARA, JM:
This assessee’s appeal for assessment year 2016-17 arises against DIN and order no. ITBA/NFAC/S/250/2024-25/1064273089(1), dated 22.04.2024, passed by the learned CIT(A)/National Faceless Appeal Centre (NFAC), Delhi, in appeal no. NFAC/2015-16/10159257 in proceedings u/s 250 of the Income-tax Act, 1961 ( in short the “Act”). Case called twice. None appears at the assessee’s behest. He is accordingly proceeded ex parte.
It emerges during the course of hearing with the able assistance coming from the Revenue side that both the lower authorities have initiated section 148/147
Hon’ble jurisdictional high court in PCIT v. Inderjit Singh Sodhi HUF (2024) 161 taxmann.com 701 (Delhi) has already settled the very issue against the assessee and in department’s favour in holding that such an interest income is not exempt from assessment under the provisions of the Act. That being the case, I see no merit in the assessee’s instant sole substantive ground. Rejected accordingly.
This assessee’s appeal is dismissed.
Order pronounced in open court on 14.11.2024