DHARMBATI,FARIDABAD vs. INCOME TAX INSPECTOR FARIDABAD, FARIDABAD
In the result, appeal of the assessee is allowed
ITA 5672/DEL/2025[2018-19]Status: DisposedITAT Delhi05 Mar 2026AY 2018-19
Bench: Shri Satbeer Singh Godara & Shri M. Balaganeshassessment Year: 2018-19 Dharmbati, Vs. Income Tax Inspector, H. No. 523, Chandawali, Faridabad Ballabhgarh, Faridabad Pan: Azipb6400G (Appellant) (Respondent) Assessee By None Department By Ms. Monika Singh, Cit(Dr) Date Of Hearing 05.03.2026 Date Of Pronouncement 05.03.2026 Order Per Satbeer Singh Godara, Jm This Assessee’S Appeal For Assessment Year 2018-19, Arises Against The Commissioner Of Income Tax (Appeals)/National Faceless Appeal Centre [In Short, The “Cit(A)/Nfac”], Delhi’S Din & Order No. Itba/Nfac/S/250/2025-26/1077406804(1), Dated 23.06.2025 Involving Proceedings Under Section 143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As ‘The Act’). Case Called Twice. None Appears At The Assessee’S Behest. He Is Accordingly Proceeded Ex-Parte. 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 In Pawan Kumar Vs. Pcit (2024) 159 Taxmann.Com 61 (Del.-Trib.) Has Distinguished The Said Case Law As Under:
Section 10(37)Section 142(1)Section 143Section 143(1)(a)Section 143(2)Section 143(3)Section 263Section 28Section 56(2)(viii)Section 57
Land Acquisition Act, 1894 granted by the court is an integral part of enhanced compensation and exempt under section 10(37) of the Act in case of the assessee.
6.1 Elaborating the above contentions, the Ld. AR pointed out that in notice under section 142(1) of the Act dated ... Supreme Court in CIT vs. Ghanshyam HUF (2009)
315 ITR 1 (SC). It was claimed that the assessee was entitled to exemption under section 10(37) of the Act. The explanation of the assessee was accepted by the Ld. AO who passed the impugned assessment order dated 22.01.2021
without making
