Rama Bai v. CIT

181 ITR 400Supreme Court of India1990#325 most cited

What is Rama Bai v. CIT authority for?

Interest income is taxable on either an accrual or cash basis, determined by accounting principles. This method was applicable prior to legislative changes that simplified the taxation of interest income.

258

judgments rely on this decision, according to BharatTax’s citation analysis of 367,368 Indian tax judgments — from 2011 to 2026.

Also referred to as

Rama Bai v. CIT · 181 ITR 400 · taxation of interest income · accrual basis · cash basis · accounting principles for interest · Land Acquisition Act interest · Section 56(2)(viii) · Section 57(iv) · Section 45(5) · Section 145A

Also reported as

84 CTR 144

Sections most often in play

Section 57(iv)Section 56(2)(viii)Section 10(37)Section 1961Section 45(5)Section 145ASection 263Section 143(3)

Issues it is cited on

section 56(viii)section 2(viii)section 45(5)(c)section 155(16)section 45(5)(b)section 23(1a)section 145a(b)section 145bsection 45(5)section 145b(1)section 57(iv)section 104

Judgments citing Rama Bai v. CIT

Kansai Nerolac Paints Ltd, Mumbai vs. DCIT RG 6(2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 3642/MUM/2016[2010-11]Status: DisposedITAT Mumbai04 Dec 2023AY 2010-11

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court, in the case of Rama Bai v. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to taxpayers. With a view to mitigating the hardship, it is proposed to amend section 145A to provide that the interest received by an assessee on compensation or enhanced 13 Kansai Nerolac Paints Limi…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl. CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 3385/MUM/2014[2009-10]Status: DisposedITAT Mumbai04 Dec 2023AY 2009-10

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court, in the case of Rama Bai v. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to taxpayers. With a view to mitigating the hardship, it is proposed to amend section 145A to provide that the interest received by an assessee on compensation or enhanced 13 Kansai Nerolac Paints Limi…

Kansai Nerolac Paints Limited (Erstwhile Known As Goodlass Nerolac Paints Limited), Mumbai vs. Addl CIT, Range 6 (2), Mumbai

Accordingly we see no infirmity in the decision of CIT(A) and uphold the decision of the CIT(A). This ground of the revenue is dismissed

ITA 3384/MUM/2014[2008-09]Status: DisposedITAT Mumbai04 Dec 2023AY 2008-09

Bench: Shri Amit Shukla () & Ms. Padmavathy S. ()

Section 115Section 143(2)Section 145ASection 35DSection 36(1)(va)Section 40

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court, in the case of Rama Bai v. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to taxpayers. With a view to mitigating the hardship, it is proposed to amend section 145A to provide that the interest received by an assessee on compensation or enhanced 13 Kansai Nerolac Paints Limi…

Bharat Bhushan, Karnal Haryana vs. ITO, Ward-1, Karnal

In the result, all the appeals of the assessee are allowed

ITA 2715/DEL/2023[218-19]Status: DisposedITAT Delhi16 Nov 2023

Bench: Dr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10(37)Section 10(37)(i)Section 28

…rces", shall be computed in accordance with either cash or mercantile ITA Nos. 1747 & 1750/Bang/2017 system of accounting regularly employed by the assessee. Further the Hon'ble Supreme Court in the case of Smt. Rama Bai v. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed to…

Ashwani Kumar, Gurugram vs. ITO, Ward-1(3), Gurgaon

In the result, all the appeals of the assessee are allowed

ITA 1728/DEL/2022[2018-19]Status: DisposedITAT Delhi16 Nov 2023AY 2018-19

Bench: Dr. B. R. R. Kumar

For Appellant: Shri M.R Sahu, CAFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10(37)Section 10(37)(i)Section 28

…rces", shall be computed in accordance with either cash or mercantile ITA Nos. 1747 & 1750/Bang/2017 system of accounting regularly employed by the assessee. Further the Hon'ble Supreme Court in the case of Smt. Rama Bai v. CIT (1990) 84 CTR (SC) 164 : (1990) 181 ITR 400 (SC) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed to…

Virender Rathee, Bahadurgarh vs. ITO Ward-5, Rohtak

In the result, the appeal filed by the assessee is allowed

ITA 693/DEL/2023[2018-19]Status: DisposedITAT Delhi07 Jul 2023AY 2018-19

Bench: Shri C.M. Gargvirender Rathee, Vs. Ito, 7, Vishwa, Jatwara Mohalla, Ward-5, District Jhajjar, Bahadurgarh, Rohtak Haryana (Appellant) (Respondent) Pan: Akrpr2303Q

For Appellant: Shri Pawan Chhikara, CAFor Respondent: Shri Om Parkash, Sr. DR
Section 10(37)Section 250Section 28Section 45(5)

…nd gains of business or profession or income from other sources shall be computed in accordance with either cash or Mercantile system of accounting regularly employed by the assessee. The honourable Supreme Virender Rathee Court in case of Rama Bai versus CIT 181 ITR 400 held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. With a view to mitigate that hardship provisions of Section 145A were amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Nitin Kumar, Saharanpur vs. ITO, Ward 3(3)(5), Saharanpur

In the result appeal of the assessee is allowed

ITA 56/DEL/2023[2018-19]Status: DisposedITAT Delhi23 Jun 2023AY 2018-19
For Appellant: Shri Dhurav Goel, CAFor Respondent: Shri Sumesh Swani, Sr. DR
Section 10(37)Section 28Section 56

…r that profits and gains of business or profession or income from other sources shall be computed in accordance with either cash or Mercantile system of accounting regularly employed by the assessee. The honourable Supreme Court in case of Rama Bai versus CIT 181 ITR 400 held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. With a view to mitigate that hardship provisions of Section 145A were amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Income Tax Officer, Ward-1-1, Kota vs. Shri Chandi Ram, Kota

In the result, appeal of the revenue is dismissed

ITA 662/JPR/2018[2012-13]Status: DisposedITAT Jaipur14 Jun 2023AY 2012-13

Bench: SHRI SANDEEP GOSAIN (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Sh. Siddharth Ranka (Adv.) &For Respondent: Smt Runi Pal (Addl. CIT)
Section 143(3)

…ts and gains of business or profession” or “Income from other sources”, shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. Further, the Hon’ble Supreme Court in the case of Rama Bai vs. CIT (181 ITR 400) has held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. 46.2 With a view to mitigate the hardship, section 145A is amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed to be h…

Subhash Chand Dhingra, Gurgaon vs. ACIT Central Circle-3(1), Gurgaon

The appeals are dismissed

ITA 1063/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

…cision of the Apex Court in CIT v. Ghanshyam (HUF)[2009] 315 ITR 1/182 Taxman 368. The Hon'ble jurisdictional High Court held that in the case of TMK Govindaraju Chetty v. Commissioner of Income-tax, Madras [66 ITR 465], Rama Rai &Ors. v. CIT, Andhra Pradesh [181 ITR 400] and K.S. Krishna Rao v. CIT, A.P. [181 ITR 408]; this position of law has been consistently reiterated by Supreme Court by holding that it is settled law that the interest received on delayed payment of the compensation is a revenue receipt eligible to income tax. The Hon‟ble High Court dismissed the writ of the assessee in which it was claimed…

Ashok Kumar Dhingra, Gurgaon vs. ACIT Circle-1(1), Gurgaon

The appeals are dismissed

ITA 1061/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

…cision of the Apex Court in CIT v. Ghanshyam (HUF)[2009] 315 ITR 1/182 Taxman 368. The Hon'ble jurisdictional High Court held that in the case of TMK Govindaraju Chetty v. Commissioner of Income-tax, Madras [66 ITR 465], Rama Rai &Ors. v. CIT, Andhra Pradesh [181 ITR 400] and K.S. Krishna Rao v. CIT, A.P. [181 ITR 408]; this position of law has been consistently reiterated by Supreme Court by holding that it is settled law that the interest received on delayed payment of the compensation is a revenue receipt eligible to income tax. The Hon‟ble High Court dismissed the writ of the assessee in which it was claimed…

Satish Kumar Dhingra, Haryana vs. ACIT Circle-4(1), Gurgaon

The appeals are dismissed

ITA 1060/DEL/2022[2017-18]Status: DisposedITAT Delhi07 Feb 2023AY 2017-18

Bench: Shri Shamim Yahya & Shri Anubhav Sharmasubhash Chand Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Central Circle-3(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aarpd8652J Satish Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-4(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Aanpd1971A Ashok Kumar Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Abupd6730B Giriraj Dhingra, Vs. Acit, House No. 1/43, Shivaji Nagar, Circle-1(1), Gurgaon Gurgaon (Appellant) (Respondent) Pan: Achpd9434E

For Appellant: Smt. Kavita Jha, AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 10(37)Section 139(4)Section 139(5)Section 143Section 143(3)Section 145ASection 263Section 56(2)(viii)Section 57

…cision of the Apex Court in CIT v. Ghanshyam (HUF)[2009] 315 ITR 1/182 Taxman 368. The Hon'ble jurisdictional High Court held that in the case of TMK Govindaraju Chetty v. Commissioner of Income-tax, Madras [66 ITR 465], Rama Rai &Ors. v. CIT, Andhra Pradesh [181 ITR 400] and K.S. Krishna Rao v. CIT, A.P. [181 ITR 408]; this position of law has been consistently reiterated by Supreme Court by holding that it is settled law that the interest received on delayed payment of the compensation is a revenue receipt eligible to income tax. The Hon‟ble High Court dismissed the writ of the assessee in which it was claimed…

Sh. Manjeet Singh, Karnal vs. ITO, Karnal

In the result, the appeals of the assessees are allowed

ITA 1391/DEL/2017[2011-12]Status: DisposedITAT Delhi25 Jan 2023AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Aditya Srinivasan, CAFor Respondent: Sh. K. K. Mishra, Sr. DR
Section 10(37)Section 145ASection 2Section 23(1)Section 28Section 4Section 56Section 56(2)(viii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH ‘F’, DEHRADUN Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 1391/Del/2017 : Asstt. Year : 2011-12 Manjeet Singh, Vs ITO, Parvesh Kumar Sharma, Ward-2, 493-L, Model Town, Karnal Karnal (APPELLANT) (RESPONDENT) PAN No. ABFPG9436Q ITA No. 1389/Del/2017 : Asstt. Year : 2011-12 Puneet Singh, Vs ACIT, Parvesh Kumar Sharma, Karnal 493-L, Model Town, Karnal (APPELLANT) (RESPONDENT) PAN No. BCLPS2035R Assessee by : Sh. Aditya Srinivasan, CA Sh. Rishabh Kanojia, CA Revenue by : Sh. K. K. Mishra, Sr. DR Date of Hearing: 08.1…

Sh. Puneet Singh, Karnal vs. ACIT, Karnal

In the result, the appeals of the assessees are allowed

ITA 1389/DEL/2017[2011-12]Status: DisposedITAT Delhi25 Jan 2023AY 2011-12

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Aditya Srinivasan, CAFor Respondent: Sh. K. K. Mishra, Sr. DR
Section 10(37)Section 145ASection 2Section 23(1)Section 28Section 4Section 56Section 56(2)(viii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DEHRADUN BENCH ‘F’, DEHRADUN Before Dr. B. R. R. Kumar, Accountant Member Sh. Yogesh Kumar US, Judicial Member ITA No. 1391/Del/2017 : Asstt. Year : 2011-12 Manjeet Singh, Vs ITO, Parvesh Kumar Sharma, Ward-2, 493-L, Model Town, Karnal Karnal (APPELLANT) (RESPONDENT) PAN No. ABFPG9436Q ITA No. 1389/Del/2017 : Asstt. Year : 2011-12 Puneet Singh, Vs ACIT, Parvesh Kumar Sharma, Karnal 493-L, Model Town, Karnal (APPELLANT) (RESPONDENT) PAN No. BCLPS2035R Assessee by : Sh. Aditya Srinivasan, CA Sh. Rishabh Kanojia, CA Revenue by : Sh. K. K. Mishra, Sr. DR Date of Hearing: 08.1…

Sana Shah, Panipat vs. ITO, Ward-1, Panipat

Appeal stands dismissed

ITA 1702/DEL/2022[2018=-19]Status: DisposedITAT Delhi17 Jan 2023

Bench: Shri N.K. Billaiya & Shri Anubhav Sharmasana Shah, Vs. Ito, 744-745, Model Town, Ward-1, Panipat, Haryana Panipat (Appellant) (Respondent) Pan: Bopps2855R

For Appellant: Ms. Aditi S. Mann, AdvFor Respondent: Ms. Kajal Singh, Sr. DR
Section 10Section 10(37)Section 143(3)Section 145BSection 28Section 5Section 54(4)Section 56Section 56(2)(viii)

…ensation. He buttresses his contention by relying upon Central Board of Direct Taxes Circular No. 5 of 2010 to contend that the amendment brought in 2010 was to remove the hardships created by the decision of the Supreme Court in Rama Sai v. Taxman 496/[1990] 181 ITR 400. Reliance is placed upon the decision of Gujarat High Court in Movaliya Bhikhubhai Balabhai v. ITO [2016 70 taxmann.com 45/388 ITR 343. 7. Before dealing with the contentions, relevant portion of the circular is quoted below: '46. Rationalizing the provisions of taxation of interest received on delayed compensation or on enhanced compensation. 4…

Piyushkumar P Patel, Vadodara vs. The ITO, Ward-1(3)(2), Vadodara

The appeal of the assessee is allowed

ITA 1700/AHD/2019[2009-10]Status: DisposedITAT Ahmedabad31 Oct 2022AY 2009-10

Bench: Ms. Suchitra Kamble

For Appellant: Respondent byFor Respondent: Shri Mukesh Sharma
Section 139(1)Section 145ASection 147Section 148Section 250

…leted. The Piyushkumar P Patel vs. ITO Asst.Year –2009-10 Ld. AR further submitted that the interest on enhanced compensation was offered by spreading over the period from date of possession till the date of payment in view of the decision in case of Rama Bai 181 ITR 400. The Ld. AR submitted that Section 145A(b) was not applicable for the year under appeal. The Ld. AR submitted that the CIT(A) rejected the contentions of the assessee relying upon the decision in case of CIT vs. Ghanshyam HUF and further that interest income was never shown in ITR for earlier years. The Ld. AR relied upon the decision of the Juri…

Chander Kalan, Delhi vs. Neac, Delhi

In the result, the appeal filed by the assessee is allowed

ITA 1619/DEL/2021[2018-19]Status: DisposedITAT Delhi14 Oct 2022AY 2018-19
For Appellant: Ms Ishita Farsaiya, AdvocateFor Respondent: Shri Mithalesh Kr. Pandey, Sr. DR
Section 10Section 10(37)Section 28Section 45Section 56

…r that profits and gains of business or profession or income from other sources shall be computed in accordance with either cash or Mercantile system of accounting regularly employed by the assessee. The honourable Supreme Court in case of Rama Bai versus CIT 181 ITR 400 held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. With a view to mitigate that hardship provisions of Section 145A were amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Dinesh Sharma, New Delhi vs. ITO Ward-53(5), New Delhi

In the result, the appeal filed by the assessee is allowed

ITA 9632/DEL/2019[2016-17]Status: DisposedITAT Delhi14 Oct 2022AY 2016-17

Bench: Shri C.M. Gargassessment Year: 2016-17 Dinesh Sharma, Vs. Ito, 389, Masjit Moth, Ward-53(5), Ndse-2, New Delhi. New Delhi. Pan: Aarps5040F (Appellant) (Respondent) Assessee By : Shri Ashok Sikka, Advocate Revenue By : Shri Mithalesh Kr. Pandey, Sr. Dr Date Of Hearing : 15.09.2022 Date Of Pronouncement : 14.10.2022 Order

For Appellant: Shri Ashok Sikka, AdvocateFor Respondent: Shri Mithalesh Kr. Pandey, Sr. DR
Section 28

…that profits and gains of business or profession or income from other sources shall be computed in accordance with either cash or Mercantile system of accounting 4 regularly employed by the assessee. The honourable Supreme Court in case of Rama Bai versus CIT 181 ITR 400 held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. With a view to mitigate that hardship provisions of Section 145A were amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Kamla Devi, Hisar vs. ITO, Ward-5, Hisar

In the result appeal of the assessee is allowed

ITA 1418/DEL/2022[2012-13]Status: DisposedITAT Delhi21 Sept 2022AY 2012-13
For Appellant: Shri Suraj Bhan Nain, AdvocateFor Respondent: Shri Mithalesh Kr. Pandey, Sr. DR
Section 10(37)Section 147Section 148Section 28

…r that profits and gains of business or profession or income from other sources shall be computed in accordance with either cash or Mercantile system of accounting regularly employed by the assessee. The honourable Supreme Court in case of Rama Bai versus CIT 181 ITR 400 held that arrears of interest computed on delayed or enhanced compensation shall be taxable on accrual basis. This has caused undue hardship to the taxpayers. With a view to mitigate that hardship provisions of Section 145A were amended to provide that the interest received by an assessee on compensation or enhanced compensation shall be deemed t…

Bhagwan Vithoba More, Latur vs. Income-Tax Officer, Ward - 1, Latur

Appeal is dismissed in above terms

ITA 1806/PUN/2017[2010-11]Status: DisposedITAT Pune12 May 2022AY 2010-11

Bench: Shri S.S. Godara & Dr. Dipak P. Ripoteshri Bhagwan Vithoba More, The Income Tax Officer At Post Kopergaon, Ward -1, Latur Taluka & Dist. Latur Vs. Pan : Azvpm7554P

For Appellant: Shri Sharad A ShahFor Respondent: Shri S.P. Walimbe
Section 10(37)Section 144Section 145ASection 147Section 23Section 23(2)Section 28Section 34Section 45(5)Section 56(2)(viii)

…amount and, therefore, is a revenue receipt liable to tax under the Income-tax Act .... " (p. 158) 9. This position of law has been consistently reiterated by this Court in the case of T.N.K. Govindaraju Chetty v. CIT [1967J 66 lTR 465, Rama Rai v. CIT [1990]181 ITR 400 and K.S. Krishna Rao v. CIT [1990J 181 ITR 408. Thus, by a catena of judicial pronouncements, it is settled law that the interest received on delayed payment of the compensation is a revenue receipt exigible to income-tax. It is true that in amending the definition of 'interest' in section 2(28A), interest was defined to mean interest payable in…

Pranav Saran, New Delhi vs. ACIT Circle-32(1), New Delhi

In the result, the appeal of the assessee is allowed

ITA 499/DEL/2021[2016-17]Status: DisposedITAT Delhi04 May 2022AY 2016-17

Bench: Shri Amit Shukla & Shri Pradip Kumar Kedia

For Appellant: Dr. Rakesh Gupta, AdvocateFor Respondent: Shri Ajay Kumar, Senior DR
Section 10(37)Section 143(3)Section 194LSection 251Section 251(2)Section 28Section 45Section 45(5)Section 56Section 57

…paid u] s 34 of the act is interest paid for the delayed payment of compensation and therefore it is a revenue receipt liable to tax under the income tax act. iv. The court also considered several decisions of the Hon’ble Supreme Court in case of 66 ITR 465, 181 ITR 400 & 181 ITR 408. v. The Hon’ble court in para number 10 categorically held that interest received as income on the delayed payment of the compensation determined u/s 28 or 31 [?] {sic 34} of the 13 ITA No.499/Del./2021 land acquisition act is taxable event. It held that it is a revenue receipt chargeable to tax u/ s 4 of the act. vi. In that para…