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Facts
The assessee filed rectification applications u/s 154 of the Income Tax Act regarding the taxability of interest on compensation for compulsory acquisition of land. The Assessing Officer dismissed the applications, finding no mistake apparent from the record, which was sustained by the CIT(A).
Held
The Tribunal held that the assessee's claim regarding the taxability of interest was not sustainable, citing decisions of the Punjab and Haryana High Court and the Supreme Court. Consequently, there was no error in the lower authorities' decision to decline the benefit of rectification.
Key Issues
Whether the interest received on compensation for compulsory acquisition of land is taxable and whether the lower authorities erred in dismissing the assessee's rectification application.
Sections Cited
250, 1961, 143(1), 154, 56(2), 57
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Income Tax Appellate Tribunal, DELHI BENCH ‘A’: NEW DELHI
Before: SHRI S. RIFAUR RAHMAN & SHRI ANUBHAV SHARMA
O R D E R PER ANUBHAV SHARMA, AM: These five appeals are preferred by the Assessee against the orders all dated 20.03.2023 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Years 2014- 15 to 2018-19 respectively.
None appeared for the assessee at the time of hearing. Earlier adjournment was sought for and the date was granted in the presence of the assessee representative. No fresh notice is justified as we have gone through the issues involved and it appears that issues are covered against the assessee and thus assessee is not putting in appearance. Ld. DR was heard.
On a perusal of the material, we find that assessee’s return of income was processed u/s 143(1). Subsequently, rectification application u/s 154 of the Act was filed by the assessee on the basis of that interest receipt from HUDA on compulsory acquisition of land compensation is not taxable and reliance was placed on few decisions upon Hon’ble Supreme Court and of this Tribunal, however, vide order dated 27.11.2020, the rectification application was dismissed by the Assessing Officer by observing that there is no mistake apparent from record and the same has been sustained by the Ld. CIT(A), for which assessee is in appeal.