CIT v. Ghanshyam (HUF)

315 ITR 1Supreme Court of India2009#207 most cited

What is CIT v. Ghanshyam (HUF) authority for?

Interest received under Section 28 of the Land Acquisition Act, 1894, is considered part of the enhanced compensation on compulsory acquisition of land. It is taxable as 'capital gains' and not separately as 'interest income' under the head Income from Other Sources.

363

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2011 to 2026.

Also referred to as

CIT v. Ghanshyam HUF · Section 28 Land Acquisition Act · enhanced compensation · compulsory acquisition · interest income taxability · capital gains · Section 10(37) Income Tax Act · Section 45(5) Income Tax Act · Section 56(2)(viii) Income Tax Act · agricultural land acquisition

Also reported as

8 SCC 412182 Taxmann 368

Sections most often in play

Section 56(2)(viii)Section 57(iv)Section 10(37)Section 143(3)Section 263Section 1961Section 45(5)Section 142(1)
Read the full judgment

Issues it is cited on

section 2(viii)section 56(viii)section 155(16)section 45(5)(c)section 145b(1)section 45(5)(b)section 23(1a)section 145bsection 145a(b)section 45(5)section 57(iv)section 56(2)(viii)

Judgments citing CIT v. Ghanshyam (HUF)

Dharam Pal, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1432/CHANDI/2016[2007-08]Status: DisposedITAT Chandigarh09 Jul 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Amarjeet, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1431/CHANDI/2016[2009-10]Status: DisposedITAT Chandigarh09 Jul 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Karambir, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1424/CHANDI/2016[2009-10]Status: DisposedITAT Chandigarh09 Jul 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Karambir, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1422/CHANDI/2016[2007-08]Status: DisposedITAT Chandigarh09 Jul 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Sheo Chand, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1421/CHANDI/2016[2009-10]Status: DisposedITAT Chandigarh09 Jul 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Sheo Chand, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1419/CHANDI/2016[2007-08]Status: DisposedITAT Chandigarh09 Jul 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Ved Pal, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1418/CHANDI/2016[2009-10]Status: DisposedITAT Chandigarh09 Jul 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Ved Pal, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1416/CHANDI/2016[2007-08]Status: DisposedITAT Chandigarh09 Jul 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Satbir, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1415/CHANDI/2016[2009-10]Status: DisposedITAT Chandigarh09 Jul 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

Satbir, Narwana vs. ITO, Jind

In the result, all the appeals preferred by the assessee are

ITA 1413/CHANDI/2016[2007-08]Status: DisposedITAT Chandigarh09 Jul 2018AY 2007-08

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumar

For Appellant: Shri Gaurav Mittal, AdvFor Respondent: Smt.Lagan Preet Sandhu, Sr.DR
Section 154Section 28Section 45(5)

…mount of interest in the impugned years in the reopened assessment proceedings u/s 147 r.w.s. 143(3) of the Act. 7. Before the Ld.CIT (Appeals), the assessee relied upon the decision of the Hon'ble Supreme Court in the case of CIT Vs. Ghanshyam (HUF) (2009) 315 ITR 1 (SC) and contended that as per the ratio laid down in the said decision the interest received u/s 28 of the Land Acquisition Act, 1894 does not partake the character of interest, rather it was a part of compensation of land which was not taxable as per the provisions of section 10(37) of the Income Tax Act. The Ld. CIT(Appeals) after considering…

The New Vikash Co-Op. House Building Society Ltd., Faridabad vs. ACIT, Faridabad

In the result ITA NO. 6051/Del/2013 is partly allowed

ITA 3596/DEL/2011[2008-09]Status: DisposedITAT Delhi29 Jun 2018AY 2008-09

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Appellant: Shri Vijay Kumar Gupta, AdvFor Respondent: Smt. Deepali Chandra, CIT DR
Section 139Section 143(2)Section 148Section 155Section 2(24)Section 2(31)Section 45Section 45(5)

…sation would be taxable only when it attained finality irrespective of the remedial provision included in the income w.e.f 01.04.2004 u/s 45(5)(c) of the Act. This issue has already been decided by the Hon'ble Supreme Court in case of CIT Vs. Ghanashyam (HUF) 315 ITR 1, wherein, it has been held that the enhanced compensation is liable to be taxed u/s 45(5) in the year of receipt and interest is also chargeable to tax in the year of receipt as interest on excess compensation u/s 28 of the land acquisition Act form part of the compensation only which is chargeable to tax u/s 45(5) in the year of receipt. However f…

Vitthal Gurunath Patil, Latur vs. Income-Tax Officer, Latur

In the result, appeal of the assessee is allowed for statistical purposes

ITA 1386/PUN/2017[2010-11]Status: DisposedITAT Pune22 Jun 2018AY 2010-11

Bench: Shri D. Karunakara Rao, Am & Shri Vikas Awasthy, Jm आयकर अपील सं. / Ita No. 1386/Pun/2017 "नधा"रण वष" / Assessment Year : 2010-11

For Appellant: None (Written submission)For Respondent: Shri Achal Sharma
Section 28Section 34Section 57

…ssue had come up before the Co-ordinate Bench of Tribunal in the case of Dnyanoba Shajirao Jadhav Vs. ITO (supra.). The Tribunal after taking into consideration decisions of Hon'ble Supreme Court of India in the case of CIT Vs. Ghanshyam (HUF) reported as 315 ITR 1 (SC) and in the case of Bikram Singh & Ors Vs. Land Acquisition Collector & Ors, reported as 224 ITR 551 held as under: “7. We have heard the submissions made by the ld. DR and have perused the material available on record. The assessee in appeal has raised 5 grounds. All the grounds are directed towards the solitary issue whether interest receiv…

ITO, Faridabad vs. Shri Nathi Saini, Faridabad

In the result, the appeal filed by the Revenue is dismissed

ITA 2800/DEL/2016[2012-13]Status: DisposedITAT Delhi23 Apr 2018AY 2012-13

Bench: Shri R.S. Syal & Shri K. Narasimha Charyassessment Year : 2012-13 Ito, Vs. Nathi Saini, Ward-11(1), Th. L/H Shri Giriraj Singh Saini, Cgo Complex, Nh-4, D-264, Sector-15A, Ajronda, Faridabad. Faridabad. Pan: Dieps0341M (Appellant) (Respondent)

For Appellant: Shri Naresh Kumar Aggarwal, AdvocateFor Respondent: Shri B.R. Mishra, Sr. DR
Section 143(2)Section 271(1)(c)Section 56(2)(viii)

…ngh Chanda [ITA 309-2016 (OM)], a 3 copy of which has been placed on record, in which it has been held that penalty should not be imposed u/s 271(1)(c) in respect of interest income not offered for taxation in view of the judgment in CIT vs. Ghanshyam (2009) 315 ITR 1 (SC) and corresponding amendment to section 56(2)(viii) charging such amount to tax w.e.f. the assessment year 2011-12. The Hon'ble jurisdictional High Court was also dealing with the assessment year 2011-12, covering the period post amendment, in which no substantial question of law was held to be arising from the order of the Tribunal deletin…

M/S Power Grid Corporation of India Limited vs. Assistant Commissioner

WP/27667/2015HC Karnataka07 Mar 2018

Bench: The Hon’Ble Mr.Justice Aravind Kumar

…erest’ as found in Section 2(28-A) vis-à-vis Section 194A of the Income Tax Act,1961 and has drawn the attention of this Court to the judgment of Hon’ble Apex Court in the case of COMMISSIONER OF INCOME TAX, FARIDABAD vs GHANSHYAM (HUF) reported in (2009)8 SCC 412 to contend that though Hon’ble Apex Court in BIKRAM SINGH’s case has held that tax is 13 liable to be deducted on interest component, in GHANSHYAM’s case, it has been further clarified that interest as referred to under the LA Act would be referable to Section 28 as well as Section 34 and where interest is awarded under Section 34…

M/S Power Grid Corporation of India Limited vs. Mr. B.B. Madaya

WP/26380/2015HC Karnataka07 Mar 2018

Bench: The Hon’Ble Mr.Justice Aravind Kumar

…erest’ as found in Section 2(28-A) vis-à-vis Section 194A of the Income Tax Act,1961 and has drawn the attention of this Court to the judgment of Hon’ble Apex Court in the case of COMMISSIONER OF INCOME TAX, FARIDABAD vs GHANSHYAM (HUF) reported in (2009)8 SCC 412 to contend that though Hon’ble Apex Court in BIKRAM SINGH’s case has held that tax is 13 liable to be deducted on interest component, in GHANSHYAM’s case, it has been further clarified that interest as referred to under the LA Act would be referable to Section 28 as well as Section 34 and where interest is awarded under Section 34…

M/S. Power Grid Corporation vs. The Assistant Commissioner

WP/43215/2015HC Karnataka07 Mar 2018

Bench: The Hon’Ble Mr.Justice Aravind Kumar

…erest’ as found in Section 2(28-A) vis-à-vis Section 194A of the Income Tax Act,1961 and has drawn the attention of this Court to the judgment of Hon’ble Apex Court in the case of COMMISSIONER OF INCOME TAX, FARIDABAD vs GHANSHYAM (HUF) reported in (2009)8 SCC 412 to contend that though Hon’ble Apex Court in BIKRAM SINGH’s case has held that tax is 13 liable to be deducted on interest component, in GHANSHYAM’s case, it has been further clarified that interest as referred to under the LA Act would be referable to Section 28 as well as Section 34 and where interest is awarded under Section 34…

M/S Power Grid Corporation of India Limited vs. Mr Swamy Gowda

WP/27668/2015HC Karnataka07 Mar 2018

Bench: The Hon’Ble Mr.Justice Aravind Kumar

…erest’ as found in Section 2(28-A) vis-à-vis Section 194A of the Income Tax Act,1961 and has drawn the attention of this Court to the judgment of Hon’ble Apex Court in the case of COMMISSIONER OF INCOME TAX, FARIDABAD vs GHANSHYAM (HUF) reported in (2009)8 SCC 412 to contend that though Hon’ble Apex Court in BIKRAM SINGH’s case has held that tax is 13 liable to be deducted on interest component, in GHANSHYAM’s case, it has been further clarified that interest as referred to under the LA Act would be referable to Section 28 as well as Section 34 and where interest is awarded under Section 34…

Manglesh Kalyanchand Lalwani, HUF, Nashik vs. Income-Tax Officer

In the result, both the appeals filed by the assessees are partly allowed

ITA 1893/PUN/2014[2001-02]Status: DisposedITAT Pune23 Feb 2018AY 2001-02

Bench: Shri D. Karunakara Rao, Am

For Respondent: Dr. Vivek Aggarwal, CIT-DR
Section 147Section 148

…l for the assessee, there is no failure on part of the assessee in matters of true and full disclosure of fact. Therefore, the reasons recorded by the AO that revolves around the applicability of Supreme Court judgment in the case of CIT Vs. Ghanshyam (HUF) 315 ITR 1 (SC), are unsustainable and therefore, the reassessment proceedings are bad in law. ITA No.1891/PUN/2014 – Shri Kalyanchand Manakchand Lalwani (HUF) (A.Y. 2001-02) 3. Giving brief facts of the case, which are culled from the appeal filed by Shri Kalyanchand Manakchand Lalwani (HUF) for the A.Y. 2001-02, Ld. Counsel for the assessee submitted that…

Kamlesh Kalyanchand Lalwani, HUF, Nashik vs. Income-Tax Officer

In the result, both the appeals filed by the assessees are partly allowed

ITA 1892/PUN/2014[2001-02]Status: DisposedITAT Pune23 Feb 2018AY 2001-02

Bench: Shri D. Karunakara Rao, Am

For Respondent: Dr. Vivek Aggarwal, CIT-DR
Section 147Section 148

…l for the assessee, there is no failure on part of the assessee in matters of true and full disclosure of fact. Therefore, the reasons recorded by the AO that revolves around the applicability of Supreme Court judgment in the case of CIT Vs. Ghanshyam (HUF) 315 ITR 1 (SC), are unsustainable and therefore, the reassessment proceedings are bad in law. ITA No.1891/PUN/2014 – Shri Kalyanchand Manakchand Lalwani (HUF) (A.Y. 2001-02) 3. Giving brief facts of the case, which are culled from the appeal filed by Shri Kalyanchand Manakchand Lalwani (HUF) for the A.Y. 2001-02, Ld. Counsel for the assessee submitted that…

Kalyanchand Manakchand Lalwani, HUF, Nashik vs. Income-Tax Officer

In the result, both the appeals filed by the assessees are partly allowed

ITA 1891/PUN/2014[2001-02]Status: DisposedITAT Pune23 Feb 2018AY 2001-02

Bench: Shri D. Karunakara Rao, Am

For Respondent: Dr. Vivek Aggarwal, CIT-DR
Section 147Section 148

…l for the assessee, there is no failure on part of the assessee in matters of true and full disclosure of fact. Therefore, the reasons recorded by the AO that revolves around the applicability of Supreme Court judgment in the case of CIT Vs. Ghanshyam (HUF) 315 ITR 1 (SC), are unsustainable and therefore, the reassessment proceedings are bad in law. ITA No.1891/PUN/2014 – Shri Kalyanchand Manakchand Lalwani (HUF) (A.Y. 2001-02) 3. Giving brief facts of the case, which are culled from the appeal filed by Shri Kalyanchand Manakchand Lalwani (HUF) for the A.Y. 2001-02, Ld. Counsel for the assessee submitted that…