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“Section 56(2)(viii)”

Section References (mined)Section 56Section 56(2)(viii)226 judgments

The decision most relied on for Section 56(2)(viii) is CIT v. Sunbeam Auto Ltd. (332 ITR 167), cited in 897 judgments on BharatTax.

Leading authorities on Section 56(2)(viii)

CIT v. Sunbeam Auto Ltd.
332 ITR 167 · 2011 · High Court
897
citing judgments

The Commissioner cannot revise an assessment under Section 263 merely because the assessment order does not explicitly reflect an inquiry, or because the Commissioner holds a different opinion. An inquiry, even if considered inadequate, or an assessment based on a plausible view by the Assessing Officer after due examination, does not automatically make the order erroneous or prejudicial to the interests of the revenue.

ITO v. D.G. Housing Projects Ltd.
343 ITR 329 · 2012 · High Court
438
citing judgments

For exercising revisional jurisdiction under Section 263, the Commissioner must first find that the Assessing Officer's order is erroneous and unsustainable in law, as this is a condition precedent. An order is not erroneous merely because two views are possible, or if the Commissioner disagrees with the Assessing Officer's permissible view, or to simply remit the matter for further enquiries.

CIT v. Ghanshyam (HUF)
315 ITR 1 · 2009 · Supreme Court
363
citing judgments

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.

Rama Bai v. CIT
181 ITR 400 · 1990 · Supreme Court
258
citing judgments

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.

CIT v. Govindbhai Mamaiya
91 Taxmann.com 20 · 2018 · Supreme Court
205
citing judgments

Interest on enhanced compensation received under Section 28 of the Land Acquisition Act, 1894, is considered part of the compensation, not merely interest income, and is exigible to tax on a receipt basis.

CIT v. Sohana Woollen Mills
296 ITR 238 · 2008 · High Court
180
citing judgments

A mere audit objection, by itself, is insufficient to infer that an Assessing Officer's order is erroneous or prejudicial to the interest of the Revenue for the purpose of initiating revisional proceedings.

Mahender Pal Narang v. CBDT
161 Taxmann.com 301 · 2024 · High Court
178
citing judgments

Interest received as enhanced compensation under Section 28 of the Land Acquisition Act, 1894, for compulsory acquisition of land is taxable as "income from other sources" under Sections 56(2)(viii) and 57(iv) of the Income-tax Act, 1961, and is not exempt under Section 10(37).

CIT v. Hindustan Coca Cola Beverages P Ltd.
331 ITR 192 · 2011 · High Court
152
citing judgments

The Principal Commissioner of Income Tax cannot exercise revisional jurisdiction under Section 263 if the Assessing Officer has taken one of two possible views on a debatable issue during assessment proceedings.

Judgments citing Section 56(2)(viii)

Mahender, Huda Colony, Hansi vs. Income Tax Ward-1, Hisar, Aayakar Bhawan

In the result, appeal of the assessee is allowed

ITA 8139/DEL/2025[2020-21]Status: DisposedITAT Delhi19 Jan 2026AY 2020-21

Bench: SHRI SATBEER SINGH GODARA (Judicial Member)

Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 147Section 263Section 28Section 56(2)(viii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/- was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Mukesh Kumar, Yamunaanagar vs. ITO Ward 3 Yamunanagar, Yamunanagar

The appeal stand allowed for statistical purposes

ITA 1315/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh16 Jan 2026AY 2015-16

Bench: Hon’Ble Shri Rajpal Yadav & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकर अपील सं./ Ita No.1315/Chandi/2025 (िनधा"रण वष" / Assessment Year: 2015-16) Shri Mukesh Kumar Ito Ward 3 बनाम/ H. No. 76W No. 2, Sk Road Aaykar Bhawan, Sector 17, Vs. Radaur, Yamuna Nagar -135 133 Jagadhari, Yamuna Nagar - 135003 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Brups-0808-J (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ Appellant By : Sh. Ajay Jain (Ca) – Ld. Ar ""थ"कीओरसे/Respondent By : Dr. Ranjit Kaur (Addl. Cit) – Ld. Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 13.01.2026 घोषणाकीतारीख /Date Of Pronouncement : 16.01.2026 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aforesaid Appeal By Assessee For Assessment Year (Ay) 2015- 16 Arises Out Of An Order Of Learned Commissioner Of Income Tax (Appeals), Nfac [Cit(A)] Dated 02-09-2025 In The Matter Of An Assessment Framed By Ld. Assessing Officer [Ao] U/S 147 R.W.S. 144B Of The Act On 28-03-2022. The Grounds Of Appeal Read As Under: 1. That The Ao Has Wrongly Invoked The Provisions Of Section 147/148 Of Income Tax Act, 1961. 2. That The Ao Has Wrongly Taxed Enhanced Compensation Amounting To Rs. 901726 On Acquisition Of Agricultural Land Which Is Exempt Under Section 10(37) Of Income Tax Act.

For Appellant: Sh. Ajay Jain (CA) – Ld. ARFor Respondent: Dr. Ranjit Kaur (Addl. CIT) – Ld. Sr. DR
Section 10(37)Section 143(2)Section 144Section 147Section 56(2)(viii)Section 57Section 80C

1 IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, CHANDIGARH PHYSICAL HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT

Jagpal, Gurugram vs. Pr. Commissioner of Income Tax, Faridabad

In the result, appeal of assessee in ITA No

ITA 2092/DEL/2024[2018-19]Status: DisposedITAT Delhi16 Jan 2026AY 2018-19

Bench: Shri Anubhav Sharma & Shri Naveen Chandra

For Appellant: NoneFor Respondent: Shri D.S. Sidhu, CIT-DR
Section 10(37)Section 145ASection 148Section 263Section 263(1)Section 28Section 34Section 56(2)(viii)

terms of law laid down by Supreme Court and Punjab & Haryana High Court as well law provided in the Act in terms of section 56(2)(viii) r.w. 57(iv) read with section 145A. The PCIT further found that the AO did not make any inquiry with regard ... will be exigible to tax under the "income from other sources" in view of amendment w.e.f 01.04.2010 in the provisions of section 56(2)(viii) and 57(iv) of the Act. 7. The issue is no longer integra. The issue has been decided by the Delhi ITAT Benches

Mange Ram, Gurugram vs. Pr. Commissioner of Income Tax, Faridabad

In the result, appeal of the assessee is allowed

ITA 710/DEL/2024[2017-18]Status: DisposedITAT Delhi15 Jan 2026AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Amitabh Shuklaassessment Year: 2017-18 Sh. Mange Ram, Vs. Pr. Commissioner Of Income H. No. 261, Main Pataudi Tax, Faridabad, Road, Near Hanuman Temple, Village Garoli Khurd, P.O.- Basai, Gurugram, Haryana Pan: Amwpr7462B (Appellant) (Respondent) Assessee By Sh. Suraj Bhan Nian, Adv., Sh. Mahfuzur Rahman, Ca Department By Ms. Amish S. Gupt, Cit(Dr) Date Of Hearing 15.01.2026 Date Of Pronouncement 15.01.2026 Order Per Satbeer Singh Godara, Jm This Assessee’S Appeal For Assessment Year 2017-18, Arises Against The Principal Commissioner Of Income Tax [In Short, The “Pcit”], Faridabad’S Order Dated 04.12.2023 Having Din & Order No. Itba/Rev/F/Rev5/2023-24/1058449758(1), Involving Proceedings Under Section 147 R.W.S. 144 Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’). Herd Both The Parties. Case File Perused. 2. It Emerges During The Course Of Hearing That The Sole Substantive Issue Between The Parties Is That Of Correctness Of The Learned Lower Authorities’ Action Assessing The Assessee’S Interest Component Of Land Acquisition Compensation U/S 28 Of The Land Acquisition Act, 1894, While Invoking Section 57(Iv) R.W.S. 56(1)(A) R.W.S. 145A(B) Of The Act. 3. Learned Sr. Dr Representing The Department Vehemently Argued That The Instant Issue Is No More Res Integra In Light Of Mahender Pal Narang Vs. Cbdt (2020) 423 Itr 13 (P&H) As Well As Pcit Vs. Inderjit Singh Sodhi Huf (2024) 161 Taxmann.Com 301 (Del.) Wherein The Department Has Succeeded Before Their Lordships That The Impugned Interest Component Ought To Be Assessed As Income From “Other” Sources Only. 4. We Have Given Our Thoughtful Consideration To The Assessee’S Pleadings & Revenue’S Foregoing Vehement Contention. It Emerges That This Tribunal’S Recent Decision

Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 147Section 263Section 28Section 56(2)(viii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/- was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Gurmeet Singh, Panchkula vs. Income Tax Officer, Panchkula

The appeal of the assessee is dismissed

ITA 1287/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh14 Jan 2026AY 2015-16

Bench: Tribunal.

For Appellant: NoneFor Respondent: Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR
Section 10(37)Section 14Section 143(3)Section 145B(1)Section 194LSection 2Section 2(24)Section 28Section 4Section 45(5)

from a conjoint reading of the relevant statutory provisions of the income tax after its amendment w.e.f 1/4/2010 reproduced hereinabove : (i) By inserting Section 56(2)(viii) and Section 145B(1) with effect from 1st April 2010, the Legislature introduced a specific charging mechanism mandating that interest received on compensation ... capital gains. (iv) A conjoint reading of Section 2(24), Section 2(28A), Section 4, Section 10(37), Section 14, Section 45(5), Section 56(2)(viii), Section 145B(1) and Section 194LA of the Act makes it abundantly clear that any income which arises or is deemed to arise

Amardeep Chaudhary, Panchkula, Haryana vs. Income Tax Officer, Ward 1 Panchkula, Panchkula Haryana

In the result, Assessee’s appeal is partly allowed

ITA 750/CHANDI/2025[2017-18]Status: DisposedITAT Chandigarh06 Jan 2026AY 2017-18

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Krinwant Sahay, Am आयकरअपीलसं./ Ita No.750/Chd/2025 (िनधा"रणवष" / Assessment Year: 2017-18) Amardeep Chaudhary Ito Ward 1 Panchkula बनाम/ Vs. House No. 153, Sector-2, Ito Ward-1, Panchkula, Panchkula, Haryana - 134112 "ायीलेखासं./जीआइआरसं./Pan/Gir No. Aakpc-3432-A (अपीलाथ"/Appellant) (""थ" / Respondent) : अपीलाथ"कीओरसे/ : Sh. B.M. Monga & Sh. Rohit Kaura (Advocates) Appellant By ""थ"कीओरसे/Respondent By : Sh. Vivek Vardhan (Addl. Cit) Sr. Dr सुनवाईकीतारीख/Date Of Hearing : 17-12-2025 घोषणाकीतारीख /Date Of Pronouncement : 06- 01-2026

For Respondent: Sh. Vivek Vardhan (Addl. CIT) Sr. DR
Section 143(1)Section 23Section 28Section 56(2)(viii)Section 57

accept the arguments of the Assessee and by noting down the provisions of Section 56(2)(viii) inserted by Finance Act No. 2 of 2009 w.e.f 1.4.2010, disallowed the claim of the Assessee and sustained the addition made by the lower authority. Against the said order ... been pointed out by Ld. DR that in the said case (supra), it has been clearly held that after insertion of section 56(2)(viii), the Assessee cannot be allowed the benefit of enhanced compensation and interest thereon in land acquisition cases. 11. We find that this ground is squarely

Kusum Chauhan, Jagadhari Haryana vs. Income Tax Officer Ward 3 Yamunanagar, Jagadhari

The appeal stand allowed

ITA 1310/CHANDI/2025[2020-21]Status: DisposedITAT Chandigarh06 Jan 2026AY 2020-21

Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Sh. Akshat Dalal (Advocate) – Ld. ARFor Respondent: Sh. Vivek Vardhan (Addl. CIT) – Ld. Sr. DR
Section 144BSection 147Section 148Section 56(2)

nature of income at the hands of assessee, that such interest can be taxed as has been made out from the provisions of Section 56 (2) (viii) also. This question was also considered in The Oriental Insurance Company Limited's case (Supra)by High Court of Gujarat at Ahmedabad wherein ... nature of income of the payee. It had also been observed that the interest was not made chargeable to tax even by Section 56 (2) (viii) of the Act, 1961 only that part of the interest component which deals with income from other sources. In view of this discussion

Lakhi Ram, Gurugram vs. ITO Ward 1(4) Gurgaon, Gurugram

In the result, appeal of the assessee is allowed

ITA 2028/DEL/2024[2019-20]Status: DisposedITAT Delhi05 Jan 2026AY 2019-20

Bench: Sh. Satbeer Singh Godara & Sh. Amitabh Shuklaita No. 2028/Del/2024 : Asstt. Year: 2019-20 Lakhi Ram, Vs Income Tax Officer, House No. 70, Village- Dhanwapur, Ward-1(4), Daultabad, Gurugram, Gurugram, Haryana-122001 Haryana-122001 (Appellant) (Respondent) Pan No. Awzpr6814L Assessee By : None Revenue By : Ms. Ankush Kalra, Sr. Dr Date Of Hearing: 05.01.2026 Date Of Pronouncement: 05.01.2026 Order Per Satbeer Singh Godara: This Assessee’S Appeal For Assessment Year 2019-20 Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2023-24/1061566876(1) Dated 27.02.2024, In Proceedings U/S 144 R.W.S. 142(1) Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: NoneFor Respondent: Ms. Ankush Kalra, Sr. DR
Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 144Section 263Section 28Section 56(2)(viii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/- was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Sh. Amrish Singh, Sirsa vs. ACIT/DCIT- Int. Tax, Gurgaon

In the result, appeal of the assessee is allowed

ITA 590/CHANDI/2022[2019-20]Status: DisposedITAT Chandigarh23 Dec 2025AY 2019-20

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Shri Karan Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7292E (Appellant) (Respondent) With Assessment Year: 2018-19 Shri Kabal Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7934M (Appellant) (Respondent) With Ita Nos.390/Chandi/2021 & 590/Chandi/2022 Assessment Year: 2018-19 & 2019-20 Shri Amrish Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Aszps6911K (Appellant) (Respondent) Assessee By Sh. Lalit Mohan, Adv. Sh. Ankit Kumar, Adv. Department By Sh. Mahesh Kumar, Cit(Dr) Date Of Hearing 23.12.2025 Date Of Pronouncement 23.12.2025

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/ - was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Shri Kabal Jeet Singh, Sirsa vs. DCIT/ACIT-Int.-Tax, Gurgaon

In the result, appeal of the assessee is allowed

ITA 424/CHANDI/2021[2018-19]Status: DisposedITAT Chandigarh23 Dec 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Shri Karan Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7292E (Appellant) (Respondent) With Assessment Year: 2018-19 Shri Kabal Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7934M (Appellant) (Respondent) With Ita Nos.390/Chandi/2021 & 590/Chandi/2022 Assessment Year: 2018-19 & 2019-20 Shri Amrish Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Aszps6911K (Appellant) (Respondent) Assessee By Sh. Lalit Mohan, Adv. Sh. Ankit Kumar, Adv. Department By Sh. Mahesh Kumar, Cit(Dr) Date Of Hearing 23.12.2025 Date Of Pronouncement 23.12.2025

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/ - was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Shri Karan Jeet Singh, Sirsa vs. DCIT/ACIT- Int.Tax, Gurgaon

In the result, appeal of the assessee is allowed

ITA 391/CHANDI/2021[2018-19]Status: DisposedITAT Chandigarh23 Dec 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Shri Karan Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7292E (Appellant) (Respondent) With Assessment Year: 2018-19 Shri Kabal Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7934M (Appellant) (Respondent) With Ita Nos.390/Chandi/2021 & 590/Chandi/2022 Assessment Year: 2018-19 & 2019-20 Shri Amrish Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Aszps6911K (Appellant) (Respondent) Assessee By Sh. Lalit Mohan, Adv. Sh. Ankit Kumar, Adv. Department By Sh. Mahesh Kumar, Cit(Dr) Date Of Hearing 23.12.2025 Date Of Pronouncement 23.12.2025

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/ - was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Sh. Amrish Singh, Sirsa vs. DCIT/ACIT, Int. Tax., Gurgaon

In the result, appeal of the assessee is allowed

ITA 390/CHANDI/2021[2018-19]Status: DisposedITAT Chandigarh23 Dec 2025AY 2018-19

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwalassessment Year: 2018-19 Shri Karan Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7292E (Appellant) (Respondent) With Assessment Year: 2018-19 Shri Kabal Jeet Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Acgps7934M (Appellant) (Respondent) With Ita Nos.390/Chandi/2021 & 590/Chandi/2022 Assessment Year: 2018-19 & 2019-20 Shri Amrish Singh, Vs. Dcit/Acit, 1, Hisar Road, Vpo- Intl. Taxation, Khairpur, Ward-4, Sirsa, Gurgaon Haryana Pan: Aszps6911K (Appellant) (Respondent) Assessee By Sh. Lalit Mohan, Adv. Sh. Ankit Kumar, Adv. Department By Sh. Mahesh Kumar, Cit(Dr) Date Of Hearing 23.12.2025 Date Of Pronouncement 23.12.2025

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(vii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/ - was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Bir Singh, Faridabad vs. Income Tax Officer, Ward 1(1), Faridabad

In the result, appeal of assessee in ITA No

ITA 3969/DEL/2025[2017-18]Status: DisposedITAT Delhi17 Dec 2025AY 2017-18

Bench: Shri Anubhav Sharma & Shri Naveen Chandra

For Appellant: NoneFor Respondent: Shri Rajesh Kumar Dhanesta, Sr. DR
Section 10(37)Section 28Section 34Section 56(2)(viii)

will be exigible to tax under the "income from other sources" in view of amendment w.e.f 01.04.2010 in the provisions of section 56(2)(viii) and 57(iv) of the Act. 5. The issue is no longer integra. The issue has been decided by the Delhi ITAT Benches ... issue of taxability of interest received under section 28 of LAA as ‘income from other sources’ especially after the amended provision of section 56(2)(viii) and 145B(1) of the I T Act with effect from 01.04.2010. 20. It was in 2010, to align the law with the legislative

Gurdev Singh, Pinjore vs. Income Tax Officer, Ward 4. Panchkula, Panchkula

In the result, the appeal of the assessee is dismissed

ITA 817/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh15 Dec 2025AY 2015-16

Bench: the Ld. CIT(A). Before the Ld CIT(A), the assessee contended that interest received under Section 28 of the Land Acquisition Act forms part of compensation for rural agricultural land and is exempt U/S Section 10(37), relying on Supreme Court rulings such as Ghanshyam (HUF) and Hari Singh.

For Appellant: Smt. Neelam Dhiman, CA(Virtual Mode)For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr. DR
Section 10(37)Section 145BSection 145B(1)Section 28Section 56(2)(viii)Section 57

Supreme Court rulings such as Ghanshyam (HUF) and Hari Singh. 4.1 The CIT(A) rejected these arguments, holding that post-Finance Act 2009, Section 56(2)(viii) specifically taxes interest on compensation or enhanced compensation as “Income from Other Sources”, with a 50% deduction under Section 57(iv). Relying ... 463/Chd/2023), forming part of the consolidated order in land-acquisition matters. 5.1 It was argued that after insertion of sections 56(2)(viii) and 145B(1), all interest received on compensation or enhanced compensation—whether under section 28 or 34 is taxable in the year of receipt, and the earlier

Daljit Kaur, Haryana vs. ITO, Ward-1, Sirsa, Haryana

In the result, the appeal of the assessee is dismissed

ITA 697/CHANDI/2025[2018-19]Status: DisposedITAT Chandigarh15 Dec 2025AY 2018-19

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

For Appellant: Shri Parikshit Aggarwal, C.A (Virtual Mode)For Respondent: Shri Vivek Vardhan, Addl. CIT, Sr. DR
Section 56(2)(viii)Section 57

compensation. 4.1 During assessment, the AO observed from the return that the assessee had received interest on enhanced compensation within the meaning of Section 56(2)(viii) of the Income-tax Act and had claimed the entire amount as exempt. The AO issued a show-cause notice dated 09.10.2020, proposing ... grounds of appeal, the assessee’s submissions, and applicable judicial precedents, proceeded to examine whether interest on enhanced compensation is taxable under Section 56(2)(viii). The Ld. CIT(A) embarked on an extensive analysis of Supreme Court jurisprudence beginning with the landmark judgment in Dr. Shamlal Narula (1964), wherein

Sukhdev Raj, Sirsa vs. Income Tax Officer, Sirsa

In the result, the appeal of the assessee is dismissed

ITA 632/CHANDI/2025[2013-2014]Status: DisposedITAT Chandigarh10 Dec 2025AY 2013-2014

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

For Appellant: Shri Lalit Mohan, C.AFor Respondent: Shri Manav Bansal, CIT, DR
Section 10(37)Section 147Section 234ASection 234BSection 253Section 28Section 56(2)(viii)Section 57

further erred both in law and on fact in sustaining the view taken by learned Assessing Officer of making addition by invoking section 56(2)(viii) read with section 57(iv) of the Act and 145A(b) of the Act to sustain the impugned addition. 4. That even otherwise ... rejected the Assessee's contention, holding that the statutory amendments introduced by the Finance Act, 2009, specifically the insertion of Section 56(2)(viii) and Section 145A(b), superseded the judicial precedent cited by the Assessee. The AO found that, effective from A.Y. 2010-11, interest received on compensation

Bhag Singh, Panchkula vs. Income Tax Office, Ward No 3, Panchkula

In the result, the appeal of the assessee is dismissed

ITA 907/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh09 Dec 2025AY 2015-16

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: Shri Rishab Gupta, C.AFor Respondent: Shri Vivek Vardhan, Addl. CIT, Sr. DR
Section 10(37)Section 145B(1)Section 28Section 56(2)(viii)

463/Chd/2023), forming part of the consolidated order in land- acquisition matters. 5.1 It was argued that after insertion of sections 56(2)(viii) and 145B(1), all interest received on compensation or enhanced compensation—whether under section 28 or 34—is taxable in the year of receipt, and the earlier ... case of Ajay Kumar (supra), has already adjudicated identical arguments. The Bench ruled that interest on compensation falls within the ambit of Section 56(2)(viii) and is taxable in the year of receipt pursuant to Section 145B(1). The Bench explicitly rejected the applicability of Section

Nardev Singh, Manakpur, Panchkula vs. Income Tax Officer, Panchkula

In the result, appeal of the Assessee is dismissed

ITA 1038/CHANDI/2025[2015-16]Status: DisposedITAT Chandigarh09 Dec 2025AY 2015-16

Bench: SHRI. LALIET KUMAR (Judicial Member), SHRI. MANOJ KUMAR AGGARWAL (Accountant Member)

For Appellant: NoneFor Respondent: Dr. Ranjit Kaur, Addl. CIT, Sr. DR
Section 10(37)Section 145ASection 147Section 28Section 34Section 56(2)(viii)Section 57

Land Acquisition Act, 1894 as exempt u/s 10(37) of the IT Act. However, relying on the provisions of Section 145A(b) and Section 56(2)(viii), the AO held that interest received on enhanced compensation is taxable as "Income from other sources". Consequently, the AO allowed a statutory deduction ... part of compensation, the legal landscape had significantly shifted with the Finance (No. 2) Act, 2009. The appellate authority noted that Section 56(2)(viii) and Section 145A(b) were specifically introduced w.e.f. 01.04.2010 to tax interest on compensation on a receipt basis under "Income from other sources". In arriving

Mawasi, Haryana vs. Commissioner of Income Tax (Appeals), Delhi

In the result, appeal of the assessee is allowed

ITA 5020/DEL/2025[2017-18]Status: DisposedITAT Delhi02 Dec 2025AY 2017-18

Bench: Sh. Satbeer Singh Godara & Sh. Manish Agarwal

For Appellant: NoneFor Respondent: Ms. Amisha S. Gupta, CIT-DR
Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 147Section 263Section 28Section 56(2)(viii)

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... audit objection observing that interest under section 28 of Land Acquisition Act of Rs. 3,97,56,460/- was chargeable to tax under section 56(2)(viii) of the Act and also referred to the decisions in the cases of Shri Manjeet Singh HUF v. UOI & Others

Jile Singh, Haryana vs. Farmer, Delhi

In the result, appeal of the assessee is allowed

ITA 5018/DEL/2025[2017-18]Status: DisposedITAT Delhi01 Dec 2025AY 2017-18

Bench: Shri Satbeer Singh Godara & Shri Manish Agarwal

Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 147Section 263Section 28Section 56(2)(viii)Section 57

Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on compensation or enhanced compensation and also the amendments/provisions of section 56(2)(viii) introduced through Finance Act, 2009 effective from 01.04.2010 on the above issue, which the Ld. AO failed to do. The Ld. PCIT pointed ... short reasoning, the same would not amount to binding precedent. 6.7 The Ld. AR elaborated that the insertion of section 145A, section 145B, section 56(2)(viii) and section 57(iv) by the Finance (No.2) Act, 2009 w.e.f. 01.04.2010 does not change the character of interest under section