RAJENDRAKUMAR ICHUBHAI KOTHARI,BHARUCH vs. ITO, WARD-1(1), BHARUCH

ITA 836/SRT/2025Status: DisposedITAT Surat09 March 2026AY 2013-14Bench: Shri Sanjay Garg (Judicial Member), Shri Narendra Prasad Sinha (Accountant Member)6 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that both lower authorities failed to consider the evidence regarding co-ownership of the land and the assessee's share. It also noted the provision for a 50% deduction under section 57(iv) on such interest income. Therefore, the matter was restored to the AO for fresh adjudication.

What were the facts?

The assessee did not file an income tax return for AY 2013-14. Based on information, the Assessing Officer (AO) reopened assessment proceedings under section 147/148, adding interest income of Rs. 22,43,934/- received on enhanced compensation for compulsory acquisition of agricultural land, which the assessee claimed was exempt or belonged to co-owners. The CIT(A) confirmed the addition.

What were the issues?

Whether the entire interest income on enhanced compensation for agricultural land was taxable in the hands of the assessee, and if any statutory deduction was admissible.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 56,Section 57(iv),Section 250,Section 139,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, SURAT ‘SMC’ BENCH, SURAT

Before: Shri Sanjay Garg & Shri Narendra Prasad Sinha

For Appellant: Shri Surendra Modiani, CA
Hearing: 10/12/2025Pronounced: 09/03/2026

Heard together (2 matters)

ITA Nos.835/SRT/2025
ITA Nos.836/SRT/2025

Read from the judgment's own cause title. This page is filed under one of them.

Per Sanjay Garg, Judicial Member:

The present two appeals have been preferred by the assessee against the separate orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘CIT(A)’] dated 11/06/2025 (quantum appeal) & 12/06/2025 (penalty appeal) passed u/s.250 of the Income Tax Act, 1961 (hereinafter

The order continues below.

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