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Facts
The assessee filed rectification applications seeking to treat interest received from HUDA on compulsory land acquisition compensation as non-taxable. The Assessing Officer dismissed these applications, finding no apparent mistake.
Held
The Tribunal held that the assessee's claim regarding the taxability of compensation and interest was not sustainable. The decision of the High Court and Supreme Court in similar cases confirmed that such receipts are taxable.
Key Issues
Whether interest received on compulsory acquisition of land compensation is taxable, and if the rectification application was rightly dismissed by the AO.
Sections Cited
250, 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.