BHOOP SINGH YADAV,GURGAON vs. ITO,WARD-1(3), GURGAON

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ITA 1589/DEL/2023Status: DisposedITAT Delhi22 June 2023AY 2013-142 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the amount received under Section 28 of the Land Acquisition Act is treated as part of compensation and is therefore not taxable. This decision was based on previous Tribunal orders and the fact that the Revenue had accepted a similar issue in the assessee's son's case.

What were the facts?

The assessee appealed against an order concerning the treatment of an amount received under Section 28 of the Land Acquisition Act, 1894. The issue was whether this amount constituted interest income or part of enhanced compensation.

What were the issues?

The primary issue was the taxability of amounts received under Section 28 of the Land Acquisition Act, 1894, specifically whether it was taxable interest or non-taxable compensation.

Which sections of the Income-tax Act were involved?

Section 28

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Kul BharatDr. B. R. R. Kumar

For Appellant: Ms. Anju Gupta, CA
Hearing: 21.06.2023Pronounced: 22.06.2023

ORDER Per Dr. B. R. R. Kumar, Accountant Member:

The present appeal has been filed by assessee against the order of ld. CIT(A)-1, Gurgaon dated 16.09.2016.

2.

Delay condoned owing to the brain hemorrhage caused to the assessee which led to loss of consciousness for the longer period.

3.

The issue of treatment of amount received u/s 28 of Land Acquisition Act, 1894 in case of compulsory acquisition of agricultural land was in the nature of interest income or part of enhanced compensation stands decided by the orders of the Tribunal in the case of Sh. Pranav Sharan in Ashwani Kumar in ITA No. 5074/Del/2012, Umang Sitani in ITA No. 3843/De/2018 wherein it was held

Bhoop Singh Yadav that the interest received u/s 28 is treated as part of compensation and hence not taxable. In the absence of any change in the judicial pronouncements, the appeal of the assessee is hereby allowed. It is also fact on record that the similar issue involved in the case of son of the assessee Sh. Dinesh Yadav stands allowed by the Revenue in the First Appellate proceedings.

4.

In the result, the appeal of the assessee is allowed. Order Pronounced in the Open Court on 22/06/2023.

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