Sham Lal Narula (Dr.) v. CIT

53 ITR 151Supreme Court of India1964#1111 most cited

What is Sham Lal Narula (Dr.) v. CIT authority for?

Interest received under Section 28 of the Land Acquisition Act, 1894, on enhanced compensation does not form part of the compensation itself but is taxable as 'income from other sources', analogous to interest under Section 34 of the Act.

100

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2017 to 2026.

Also referred to as

Sham Lal Narula v. CIT · 53 ITR 151 · interest enhanced compensation · Section 28 Land Acquisition Act 1894 · not part of compensation · taxable income from other sources · Section 34 Land Acquisition Act · compulsory acquisition · Section 56(2)(viii) · Section 45(5) · taxability of interest · Supreme Court

Sections most often in play

Section 56(2)(viii)Section 10(37)Section 1961Section 57(iv)Section 45(5)Section 145ASection 1894Section 145B(1)

Issues it is cited on

section 2(viii)section 56(viii)section 45(5)(c)section 155(16)section 23(1a)section 45(5)(b)section 145b(1)section 104section 194lakeyman insurancesection 23(2)section 160

Judgments citing Sham Lal Narula (Dr.) v. CIT

Sh. Amrik Singh, Panchkula vs. ITO, Ward-2, Panchkula

ITA 219/CHANDI/2023[2015-16]Status: DisposedITAT Chandigarh11 Nov 2025AY 2015-16
For Respondent: Shri Suraj Bhan Nain, Advocate

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Sh. Pargat Singh, Panipat vs. ITO, Ward -1, Kaithal

ITA 180/CHANDI/2023[2018-19]Status: DisposedITAT Chandigarh11 Nov 2025AY 2018-19
For Appellant: Shri Navdeep Monga, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Sh. Gurinder Singh Grewal L/H of Parneet Kaur Grewal, Chandigarh vs. ACIT, Circle 4(1), Chandigarh

ITA 129/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh11 Nov 2025AY 2017-18
For Respondent: Shri Suraj Bhan Nain, Advocate

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

M/S Yograj Chaudhary, Yamuna Nagar vs. ITO, Ward-5, Yamuna Nagar

ITA 116/CHANDI/2023[2017-18]Status: DisposedITAT Chandigarh11 Nov 2025AY 2017-18

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Sh. Ramesh Chand, Jagadhri vs. ITO, Ward-3, Yamuna Nagar

ITA 731/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh11 Nov 2025AY 2015-16
For Appellant: Shri Suraj Bhan Nain, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Sh. Suresh Pal, Yamuna Nagar vs. ITO, Ward 5, Yamuna Nagar

ITA 668/CHANDI/2022[2018-19]Status: DisposedITAT Chandigarh11 Nov 2025AY 2018-19

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. As we have pointed out, earlier, as soon as the Collector has taken possession of the…

Sh. Kulbir Singh S/O Sh. Jagir Singh, Pinjore vs. ITO, Ward 2, Panchkula

ITA 641/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh11 Nov 2025AY 2015-16

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. -- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Saroj Chaudhary Bala, Panchkula vs. ITO, Ward-4, Panchkula

ITA 635/CHANDI/2022[2017-18]Status: DisposedITAT Chandigarh11 Nov 2025AY 2017-18

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Suraj Bhan Nain, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. --- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Smt. Shankri Devi, Panchkula vs. ACIT, Panckula Circle, Panchkula

ITA 596/CHANDI/2022[2013-14]Status: DisposedITAT Chandigarh11 Nov 2025AY 2013-14

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. KRINWANT SAHAY (Accountant Member)

For Appellant: Shri Suraj Bhan Nain, AdvocateFor Respondent: Shri Manav Bansal, CIT, DR

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. --- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Harmala, Chandigarh vs. ITO, Ward 1(1), Nangal

ITA 432/CHANDI/2022[2015-16]Status: DisposedITAT Chandigarh11 Nov 2025AY 2015-16

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. As we have pointed out, earlier, as soon as the Collector has taken possession of the…

Amrinder Singh Khubber, Ambala vs. ITO, W-5, Ambala

ITA 1044/CHANDI/2019[2013-14]Status: DisposedITAT Chandigarh11 Nov 2025AY 2013-14

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. As we have pointed out, earlier, as soon as the Collector has taken possession of the…

Amrinder Singh Khubber, Ambala vs. ITO, W-5, Ambala

ITA 1043/CHANDI/2019[2012-13]Status: DisposedITAT Chandigarh11 Nov 2025AY 2012-13

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. As we have pointed out, earlier, as soon as the Collector has taken possession of the…

Deputy Commissioner of Income Tax, Alwar vs. Ashok Sharma, Rewari

In the result, the appeal of the revenue stand dismissed

ITA 1227/JPR/2024[2018-19]Status: DisposedITAT Jaipur10 Nov 2025AY 2018-19
For Appellant: Shri Mahendra Gargieya, AdvocateFor Respondent: Mrs. Alka Gautam, CIT-DR
Section 10(37)Section 143(3)Section 145B(1)Section 28Section 56Section 56(2)(viii)Section 57

…ether the interest paid to an assessee for delayed payment of compensation for compulsory acquisition of his land partakes the character of the compensation itself or merely that of an interest payment [Dr. Sham Lal Narula v. Commissioner of Income-Tax [1964] 53 ITR 151 (SC)]; Puneet Singh v. CIT, Karnal [2019] 110 taxmann.com 116/415 ITR 215 (Punjab & Haryana); Mahender Pal Narang v. CBDT, New Delhi [2020] 120 taxmann.com 400/275 Taxman 222/423 ITR 13 (Punjab & Haryana); Mahender Pal Narang v. CBDT, Ministry of Finance [2021] 126 taxmann.com 105/279 Taxman 74/462 ITR 498 (SC); T.N.K. Govindaraju Chetty v. Commis…

Vijay Singh Chauhan, Noida vs. ITO, Ward-2(5), Noida

The appeal of the assessee is hereby dismissed

ITA 2561/DEL/2023[2015-16]Status: DisposedITAT Delhi26 Sept 2025AY 2015-16

Bench: Shri Sudhir Pareek & Shri Avdhesh Kumar Mishravijay Singh Chauhan, Income Tax Officer, House No.-193, Gali No.-3, Vs. Ward- 2(5), Noida, Village Chhalera, Sector-44, Uttar Pradesh, Noida, Uttar Pradesh India. India. Pan No: Aeipc4637E Appellant Respondent Assessee By : Sh. Naveen Kumar, Adv. Revenue By : Ms. Harpreet Kaur Hansra, Sr. Dr Date Of Hearing: 01.07.2025 Date Of Pronouncement: 26.09.2025 Order Per Sudhir Pareek, Jm: The Aforetitled Appeal Has Been Preferred Against The Order Of National Faceless Appeal Centre, Delhi [Hereinafter, In Short, ‘Cit(A)’] Dated 17.07.2023 For Ay 2015-16, By Which Appeal Of The Assessee Was Dismissed.

For Appellant: Sh. Naveen Kumar, AdvFor Respondent: Ms. Harpreet Kaur Hansra, Sr. DR
Section 10(37)Section 143(2)Section 28Section 34

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon'ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- “9. As we have pointed out, earlier, as soon as the Collector has taken possession of the…

Veeraswamy Jotheeswaran, Tiruvallur vs. ITO, Ward-1, Tiruvallur

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

ITA 1756/CHNY/2025[2018-19]Status: HeardITAT Chennai12 Sept 2025AY 2018-19

Bench: Shri George George K

For Appellant: Shri N.V. Krishnan, AdvocateFor Respondent: Shri Y. Sudarshan, JCIT
Section 10(37)Section 142(1)Section 143(2)Section 143(3)Section 145Section 147Section 148Section 148ASection 250Section 56(2)(vii)

…आयकर अपीलीय अिधकरण, ‘बी’ (एस एम सी), "यायपीठ,चे"ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ (SMC) BENCH, CHENNAI "ी जॉज" जॉज", उपा"य" के सम" BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT आयकर अपील सं./ITA No.: 1756/CHNY/2025 िनधा"रण वष"/Assessment Year: 2018-19 Shri Veeraswamy Jotheeswaran, The Income Tax Officer, Plot No.23, Sri Lakshmi Narayana, Vs. Ward 1, Nivasam Santhosh Nagar 89, Tiruvallur Veppambattu B.O, Veppampattu, Tiruvallur – 602 024. PAN: AORPJ 2510H (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant by : Shri N.V. Krishnan, Advocate ""यथ" क" ओर से/Respondent by : Shri Y. Sudarshan…

Devaraya Pillai Subramanian, Salem vs. ITO, Ward-1(1), Salem

In the result, appeal filed by the assessee is allowed

ITA 561/CHNY/2025[2017-18]Status: DisposedITAT Chennai04 Sept 2025AY 2017-18

Bench: Shri George George K & Shri S.R.Raghunathaआयकर अपील सं./Ita No.: 561/Chny/2025 धनिाजरण वर्ज / Assessment Year:2017-18 Devaraya Pillai Subramanian, Ito 58A, Sathyamoorthy Street, Vs. Ward – 1(1), Salem – 636 001. Salem. Tamil Nadu. [Pan: Aijps-3267-J] (अपीलाथी/Appellant) (प्रत्यथी/Respondent) अपीलाथीकीओरसे/Appellant By : Mr. N. Arjun Raj, Advocate प्रत्यथीकीओरसे/Respondent By : Ms. Sita Krishnamoorthy, Jcit

For Appellant: Mr. N. Arjun Raj, AdvocateFor Respondent: Ms. Sita Krishnamoorthy, JCIT
Section 56(2)(viii)

…ether the interest paid to an assessee for delayed payment of compensation for compulsory acquisition of his land partakes the character of the compensation itself or merely that of an interest payment [Dr. Sham Lal Narula v. Commissioner of Income-Tax [1964] 53 ITR 151 (SC)]; Puneet Singh v. CIT, Karnal [2019] 110 taxmann.com 116/415 ITR 215 (Punjab & Haryana); Mahender Pal Narang v. CBDT, New Delhi [2020] 120 taxmann.com 400/275 Taxтan 222/423 ITR 13 (Punjab & Haryana); Mahender Pal Narang v. CBDT, Ministry of Finance [2021] 126 taxmann.com 105/279 Taxman 74/462 ITR 498 (SC); T.N.K. Govindaraju Chetty v. Commis…

Jai Bhagwan, Vpo Badshahpur, Gurgaon, Hr vs. Income Tax Officer, Gurgaon, Haryana

The appeal stands allowed and the concurrent findings of the AO and CIT(A) are hereby affirmed

ITA 3239/DEL/2024[2014-15]Status: DisposedITAT Delhi30 Jul 2025AY 2014-15

Bench: Ms. Madhumita Roy & Shri Avdhesh Kumar Mishrajai Bhagwan Vs. Income Tax Officer Vpo Badshahpur Income Tax Building Gurgaon Gurugram- 122001 Haryana-122001 "थायीलेखासं./जीआइआरसं./Pan/Gir No: Amapb8989P Appellant .. Respondent

For Appellant: NoneFor Respondent: Sh. Om Prakash, Sr. DR
Section 10Section 143(3)Section 145ASection 2Section 28Section 4Section 56

…nd concluded that, "Keeping in view above the decision of Hon'ble jurisdictional High Court in the case of Manjeet Singh (HUF) through Karta Manjeet Singh, CWP No- 15506 of 2013 as reproduced and decision of the Apex Court in the cases of Dr. Sham Lal Narula (53 ITR 151), T.N.K. Govindraja Chetty (66 ITR 465), Bikram Singh (224 ITR 551), Rama Bai Vs. CIT (1990) 181 ITR 400 and K.S. Krishna Rao vs. CIT (1990)181 ITR 408 the interest received on compensation or enhanced compensation is liable to tax as income from other sources. Further this is to be pointed out that sections 56(2)(vii), 145 A(b) and 57 (v) have b…

ACIT 6(3), Mumbai vs. Grasim Industires Ltd, Mumbai

In the result Revenue's appeal is dismissed

ITA 6758/MUM/2011[2008-09]Status: DisposedITAT Mumbai21 May 2025AY 2008-09

Bench: Shri Saktijit Dey, Vp & Shri N.K. Billaiya, Am

Section 36(1)(va)

…whether interest awarded from the date of termination of lease agreement till the date of consent decree can be said; to be capital in nature. The learned Senior DR has heavily relied on the decision of the apex court in the case of Dr. Shamlal Narula v. CIT 53 ITR 151 (SC) for the proposition that interest on compensation is always revenue in nature. On the other hand, the learned Counsel for the assessee has relied on the Kerala High Court decision in the case of Periyar & Pareekanni Rubber Ltd. (supra) and A.P. High Court decision in the case of J.D. Italia (supra). According to him, interest up to the date o…

Income Tax Officer, Panipat vs. Gurdev Singh, Panipat

In the result, the revenue’s appeal is allowed

ITA 5259/DEL/2024[2018]Status: DisposedITAT Delhi16 May 2025

Bench: Shri Shamim Yahya & Shri Sudhir Pareeka.Yr. : 2018-19 Ito, Ward-1, Room No. 203, Vs. Gurdev Singh, First Floor, Aayakar 1, Village Rajapur, Post Bhawan, Sector-6, Office Dadlana, Panipat Panipat-132024 (Pan: Fwxps8888E) (Appellant) (Respondent) Assessee By None Department By Shri Rajesh Kumar Dhanesta, Sr. Dr Date Of Hearing : 08.05.2025 Date Of Pronouncement : 16.05.2025

Section 145BSection 28Section 34Section 45(5)Section 56(2)(viii)

…hrough the concerned amendment of 2010. Therefore, the said decision lacks any applicability in the facts and circumstances of the present case. 26. Notably, a three-Judges Bench of the Hon‟ble Supreme Court in the case of Sham Lal Narula (Dr.) v. CIT [(1964) 53 ITR 151], while considering the interest under Section 28 of the Act of 1894 to be analogous to the interest under Section 34 of the Act, took the view that the same did not form part of compensation. The relevant extract of the said decision is culled out as under:- "9. --- As we have pointed out, earlier, as soon as the Collector has taken possession of…

Krishan Pal Singh HUF, Jaipur vs. Assessing Officer, Jaipur

In the result, the appeal of the assessee is allowed

ITA 1268/JPR/2024[2018-2019]Status: DisposedITAT Jaipur19 Feb 2025AY 2018-2019

Bench: the Ld CIT (Appeals).

For Appellant: Shri N. K. Agarwal, CA &For Respondent: Mrs. Swapnil Parihar, JCIT-DR
Section 10(37)Section 142(1)Section 143(2)Section 143(3)Section 28

…Singh (HUF) Karta Manjeet Singh v. Union of India (2016) 237 Taxman 0116 (P&H). It noted another judgment of three Judges of the Hon'ble Apex Court in Bikram Singh v. Land Acquisition Collector, (1997) 224 ITR 551(SC)following Dr. Shamlal Narula v. CIT [1964] 53 ITR 151 (SC) holding that interest under Section 28 of the 1894 Act was a revenue receipt and is taxable. After considering all the available relevant material including the judgment in Ghanshyam (HUF) (supra) and also the statutory amendments carried out w.e.f. A.Y. 2010-11, the Hon'ble High Court, vide its judgment dated 14.01.2014, decided this issue i…