“enhanced compensation”

Capital GainsSection 45(5)Section 45(5)344 judgments

The decision most relied on for enhanced compensation is CIT v. Ghanshyam (HUF) (315 ITR 1), cited in 363 judgments on BharatTax.

Leading authorities on enhanced compensation

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.

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.

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. Ganpat Ram Bisnoi

296 ITR 292 · 2008 · High Court

145

citing judgments

An assessment order cannot be revised under Section 263 for being erroneous due to a perceived lack of enquiry if the Assessing Officer has already conducted an enquiry, applied their mind, and accepted the assessee's explanation.

Sarla Verma & Ors. v. Delhi Transport Corporation & Anr.

6 SCC 121 · 2009 · Reported

140

citing judgments

This case establishes the principles for calculating compensation in motor accident and personal injury claims, including the selection of the multiplier based on the deceased's age, assessment of loss of dependency, consideration of future prospects, and deductions for personal expenses.

Movaliya Bhikhubhai Balabhai v. ITO TDS

388 ITR 343 · 2016 · High Court

128

citing judgments

Interest paid on compensation or enhanced compensation for compulsory acquisition of land forms part of the compensation itself and is not taxable as interest income under section 56(2)(viii) or section 145A.

Sham Lal Narula (Dr.) v. CIT

53 ITR 151 · 1964 · Supreme Court

100

citing judgments

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.

MavaliyaBhikhubhaiBalabhai v. ITO (TDS)\n

70 Taxmann.com 45 · 2016 · High Court

citing judgments

Interest received under Section 28 of the Land Acquisition Act, 1894, forms an integral part of enhanced compensation and is not taxable as "Income from Other Sources" under Section 56(2)(viii) of the Income-tax Act, 1961. The Finance Act, 2009 amendments do not alter the compensatory nature of such interest.

Judgments citing enhanced compensation

M/S Heritage Buildcon Pvt. Ltd., Raipur vs. Principal Commissioner of Income Tax, Raipur-1, Raipur

In the result, the assessee's appeal in ITA No

ITA 35/RPR/2022[2017-18]Status: DisposedITAT Raipur17 Aug 2023AY 2017-18

Bench: Shri Ravish Sood & Shri Arun Khodpia

For Appellant: Shri Ravi Agrawal, CAFor Respondent: Shri V.K Singh, CIT-DR

Section 10(37)Section 105Section 143(3)Section 263Section 96

ACIT Vs. SV Global Mill Ltd., ITA No.2684/CHNY/2019 dated 28.01.2021, ITAT-Chennai 29. The issue before the ITAT was whether interest on enhanced compensation was taxable or exempt u/s 96 of the RFCTLARR Act, 2013. Referring to Section 3(i) of the RFCTLARR Act, 2013, it was observed ... Tribunal that interest on enhanced compensation would qualify for exemption A.Y.2017-18 u/s 96 of the RFCTLARR Act, 2013. As the issue before us, i.e., as to whether or not the exemption u/s.96 of the RFCTLARR Act, 2013 is available for the compensation received on the acquisition of lands under

ITO Ward-3, Rohtak vs. Arun Yadav, Bahadurgarh

In the result, the appeal of the Revenue is dismissed

ITA 437/DEL/2023[2019-20]Status: DisposedITAT Delhi11 Aug 2023AY 2019-20

Bench: Sh. C. M. Gargdr. B. R. R. Kumar

For Appellant: NoneFor Respondent: Sh. Kanv Bali, Sr. DR

Section 10(37)Section 270A

rightly deleted the penalty levied by the AO on the grounds that the amount received by the assessee is an enhanced compensation on compulsory acquisition of agricultural land which is exempt u/s 10(37) of the Act. Since, the assessee do not have any taxable income, we hold that

Bhupinder Singh Julka, New Delhi vs. ACIT, Circle-Int. Tax. 2(1)(2), Delhi

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

ITA 1807/DEL/2022[2018-19]Status: DisposedITAT Delhi07 Aug 2023AY 2018-19

Bench: Shri Kul Bharat & Shri M. Balaganesh

For Appellant: Ms. Monika Agarwal, AdvFor Respondent: Shri Vizay B. Vasanta, CIT(DR)

Section 143(2)Section 143(3)Section 144CSection 234BSection 80T

therefore, prayed that the addition made alongwith interest levied may kindly be deleted and appeal of the appellant be allowed. It be further held enhanced compensation is capital receipt and is not taxable.” 2. The facts of the present appeal are that the assessee is a non-resident Indian filed

ACIT, Circle-3, Noida vs. Sandeep Sharma, Noida

In the result, the appeal of the revenue is allowed for statistical purpose

ITA 3168/DEL/2018[2014-15]Status: DisposedITAT Delhi07 Aug 2023AY 2014-15

Bench: Sh. N. K. Billaiya & Sh. Yogesh Kumar Usassessment Year: 2014-15

estate of late Shri Harikesh Sharma is l/15th only, by ignoring the fact that New Okhla Industrial Development Authority has paid the Interest on enhanced compensation to only two persons, i.e. the assessee and his brother Shri Kuldeep Sharma(only persons recognized as nominee/ heirs of the estate of Shri ... late Shri Harikesh Sharma is l/15th only, by ignoring the fact that the assessee has claimed the credit of TDS deducted on interest on enhanced compensation in his ITR and has thus offered Rs.3,94,30,103/- as his share of interest income for taxation. 4. That

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)

NFAC, has erred in facts and law in upholding the action of the A.O, not deleting the addition made for interest received on enhanced compensation on account of compulsorily acquisition of Agriculture land even without Considering our detailed reply with so many ruling announced by the Honorable Apex Court ... High court, Tribunal in this regard which clearly said that the Interest awarded to the Land owner on enhanced compensation by Apex court on compulsorily acquisition of his Agriculture Land as per section 28 of Virender Rathee the Land acquisition act, 1894 is only an accretion to the value

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

erred in law and facts in confirming the addition of Rs. 20,07,526/- being 50% of interest on enhance compensation on compulsory acquisition of agricultural land received u/s. 28 of land acquisition Act 1894, and holding the same to be taxable u/s. 56 (2) (viii ... ITAT Delhi to submitted that the entire amount of interest received u/s. 28 of the land acquisition Act 1894 is on enhance compensation is part and parcel of enhance compensation thus exempt u/s. 10(37) of the Act. 5. Replying to the above, the ld. Sr. DR, placing reliance

Bhoop Singh Yadav, Gurgaon vs. ITO, Ward-1(3), Gurgaon

In the result, the appeal of the assessee is allowed

ITA 1589/DEL/2023[2013-14]Status: DisposedITAT Delhi22 Jun 2023AY 2013-14

Bench: Sh. Kul Bharatdr. B. R. R. Kumar

For Appellant: Ms. Anju Gupta, CAFor Respondent: Sh. Om Parkash, Sr. DR

Section 28

Land Acquisition Act, 1894 in case of compulsory acquisition of agricultural land was in the nature of interest income or part of enhanced compensation stands decided by the orders of the Tribunal in the case of Sh. Pranav Sharan in ITA No. 499/Del/2021, Ashwani Kumar in ITA No. 5074/Del/2012, Umang

Shambhu Dayal, Sonipat vs. ITO Ward - 4, Sonipat

In the result, the appeal of the assessee is allowed

ITA 1861/DEL/2020[2014-15]Status: DisposedITAT Delhi20 Jun 2023AY 2014-15

Bench: Dr. B. R. R. Kumar

For Appellant: Sh. R. K. Vashisht, AdvFor Respondent: Sh. Om Parkash, Sr. DR

Section 10(37)Section 2(14)Section 28

facts by discarding the deduction u/s 10(37) on amount of Rs.31,09,300/- received by the appellant on account of enhancement compensation u/s 28 through ADJ Court Sonipat after getting it he had filed his income tax return declaring his income of Rs.2,41,590/- by claiming deduction ... liable to be discarded. 2. The Ld. CIT(A) and Ld. A.O. has erred in law and facts since the entire amount of enhanced compensation is receipt of capital nature and same was received him after acquisition of Agricultural land which is not a capital asset u/s 2(14). Hence

ITO, Ward- 9(3), New Delhi vs. Fortune Land and Housing Pvt. Ltd., New Delhi

In the result, the appeal of the revenue is dismissed

ITA 3503/DEL/2018[2015-16]Status: DisposedITAT Delhi16 Jun 2023AY 2015-16

For Appellant: Shri Sahil Sharma, AdvFor Respondent: Ms. Maimun Alam, Sr. DR

execution of said collaboration. He further submitted that the Ld. CIT(A) before granting relief to the assessee examine and verify that the enhanced compensation received by the appellant has been duly offered to tax as income by OILP under the head income of from operations ... rights pertaining to the land in question irrevocably. The rights given by the appellant to OIPL also include the right to received addition or enhanced compensation from HUDA and this fact found fortified from the clauses 2 & 3 of collaboration agreement where it was made clear by the assessee

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)

furnish and/or explain for incurring any expenditure against such interest receipts. The ld. AO further noted the interest receipt of the assessee on compensation / enhanced compensation is being deemed to be the income of the year in which it is received under the provision of section 145A ... Ghanshyam (HUF) (supra) in para no. 35 where the court held that in view of provisions of section 155(16), the receipt of enhanced compensation is liable to be taxed in the year of receipt, and in view of decision of Bombay High Court in DSL Enterprises

Sh. Kesar Lal Bairwa, A-24, Varun Colony, Mandara Stand, New Sanganer Road, Mansarovar, Jaipur vs. ITO, Ward-2(4), Jaipur

In the result, appeal of the assessee is dismissed

ITA 381/JPR/2022[2016-17]Status: DisposedITAT Jaipur11 May 2023AY 2016-17

Bench: HON’BLE SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri P.C. Parwal, C.AFor Respondent: Ms Monisha Choudhary (JCIT)

Section 10(37)Section 142(1)Section 148Section 28Section 3Section 56(2)(iii)Section 56(2)(vii)Section 56(2)(viii)Section 57

raised the following grounds of appeal :- 1. The ld. CIT (A), NFAC has erred on facts and in law in holding that interest on enhanced compensation is taxable u/s 56(2)(vii) and thereby confirming the addition of Rs. 11,53,600/-. 2. The appellant craves to alter, amend ... compensation decided by the Single Bench of the Hon’ble High Court to be appropriate and Rajasthan Housing Board was directed to pay enhanced compensation along with other permissible statutory benefit thereon to all the persons affected within a period of three months. In pursuance to these direction, RHB paid

Philia Estate Developers Pvt. Ltd., New Delhi vs. ACIT, Circle-19(2), New Delhi

In the result, appeal of the assessee is allowed

ITA 3139/DEL/2019[2015-16]Status: DisposedITAT Delhi02 May 2023AY 2015-16

Bench: Shri Shamim & Shri Challa Nagendra Prasad

For Appellant: Shri R.S. Singhavi, CA and Shri Satyajit Goel, CAFor Respondent: Shri Gurpreet Singh, Sr. DR

Section 5Section 56Section 56(2)(viii)Section 57

upholding addition to the extent of Rs. 3,08,08,041/- being aggregate of initial compensation of Rs. 1,73,24,927/- and enhanced compensation of Rs. 1,34,83,114/- received on acquisition of land by Government of India without appreciating the factual matrix of the case. (ii) That ... justified in rejecting the claim of 50% deduction to the extent of Rs. 37,37,662/- u/s 57(iv) in respect of interest on enhanced compensation of Rs. 74,75,323/- by re-characterising the same under the head "Profit and Gains of Business & Profession" as against "Income from Other

Anvar Ali Poolakkodan, Malappuram vs. ITO Ward 1 & Tps, Tirur

In the result, the appeal filed by the assessee stands partly allowed for statistical purposes

ITA 614/COCH/2022[2015-2016]Status: DisposedITAT Cochin30 Mar 2023AY 2015-2016

Bench: Smt. Beena Pillai & Ms. Padmavathy Sassessment Year : 2015-16 Shri Anvar Ali Poolakkodan, The Income Tax Poolakkodan House, Officer, Randathani (Po), Ward – 1 & Tps, Malappuram District – Tirur. 676 510. Vs. Pan: Bctpp4669J Appellant Respondent Assessee By : Shri K Kittunair, Advocate : Smt J M Jamuna Devi, Sr. Revenue By Ar Date Of Hearing : 11-01-2023 Date Of Pronouncement : 30-03-2023 Order Per Beena Pillaipresent Appeal Is Filed By Assessee Against Order Dated 22.03.2022 Passed By Nfac, Delhi For A.Y. 2015-16 On Following Grounds Of Appeal:

For Appellant: Shri K Kittunair, Advocate

Section 10(37)Section 143(1)Section 145ASection 147Section 148Section 28Section 57

opinion that as per section 145A(b) and 56(2)(vii) w.e.f. 01.04.2010, the income by way of interest on compensation or enhanced compensation is taxable in the year of receipt and the Page 4 of 8 same is assessable under the head income from other sources. The assessee ... contrary, the Ld.DR submitted that, the entire interest received by the assessee will not partake the nature of compensation or the enhanced compensation. It is submitted by the Ld.DR that, the interest received by assessee includes 2 components; 1) Interest on the compensation at 9% and 2) The other part

ITO Ward - 2, Hisar vs. Hari Singh Saini, Hisar

In the result, the Revenue’s appeal stands dismissed

ITA 1539/DEL/2020[2012-13]Status: DisposedITAT Delhi20 Mar 2023AY 2012-13

For Appellant: Shri Kuldip Khera, CAFor Respondent: Ms. Indu Bala Saini, Sr. DR

Section 14SSection 155(16)Section 28Section 4Section 45(5)Section 45(5)(c)Section 56(2)(viii)

assessee has claimed that he is an agriculturist and owning approx. 80 acres of land. AO further gathered that assessee has received interest in enhanced compensation of land of Rs.1,22,55,550/- on 14.06.2011 and Rs.2,14,04,697/- on 22.03.2012. AO issued show-cause notice ... enhanced compensation/consideration (including interest under Section 28 of the 1894 Act) becomes payable/paid under the 1894 Act at different stages, the receipt of such enhanced compensation/ consideration is to be taxed in the year of receipt subject to adjustment, if any, under Section 155(16) of the 1961 Act, later

Kishan Singh, Faridabad vs. ITO, Ward -1(4), Faridabad

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

ITA 1366/DEL/2022[2012-13]Status: DisposedITAT Delhi07 Mar 2023AY 2012-13

For Appellant: Shri Sanjay Tiwari, CAFor Respondent: Shri Om Prakash, Sr. DR

Section 144Section 250Section 68Section 69

Vill Chandawali, Ballabgarh Faridabad-121004 Haryana, India .the only source for his bread earning is acquired by District revenue officer, Faridabad Haryana, and an enhanced compensation in A.Y THE 2012-13, Amounting to Rs 50,63,672.00 was received by the appellant, out of which Appellant withdraw Rs.36 ... wrongly added by the Ld. AO as income of the assessee u/s 69 of the IT ACT.1961 THOU the source of enhanced compensation received available in records , details of withdrawal available in record ,the Ld .CIT (A) failed to appreciated the fact and records submitted, wrongly confirm the addition made

Merlin Land & Housing Pvt. Ltd., Delhi vs. ITO Ward-16(4), New Delhi

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

ITA 8948/DEL/2019[2017-18]Status: DisposedITAT Delhi03 Mar 2023AY 2017-18

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

For Appellant: Sh. Anan Choudhary, AdvFor Respondent: Sh. Ajay Kumar, Sr. DR

Section 139Section 14Section 142Section 143(1)(a)Section 71

dismissed ground for statistical purposes.” 5. From the record, we find that the amount of “interest has been received from HUDA on account of enhanced compensation and the said compensation amount was transferred to M/s Orris Infrastructure Pvt. Ltd. as per the agreement between the assessee and the said concern

DCIT, Hisar Circle, Hisar vs. Vidyawati, Hisar

In the result, the Revenue’s appeal stands dismissed

ITA 76/DEL/2019[2008-09]Status: DisposedITAT Delhi15 Feb 2023AY 2008-09

Bench: The Hon'Ble High Court Of P&H Against The Order Of The Hon'Ble Itat.

For Appellant: Shri V. Rajakumar, AdvocateFor Respondent: Shri T Kipgen, CIT DR

Section 10(37)Section 143(3)Section 263Section 263(1)

eyes of law, when the case has already been decided by CIT(A). Secondly, when Hon'ble Punjab & Haryana High Court has directed compensation, enhanced compensation and interest thereon against bank guarantee and the assessee being dissatisfied, has filed SLP before Hon'ble Supreme Court, which is still pending

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

which was revised u/s 139(5) of the Act. The computation of income of the original return the assessee had shown interest on enhanced compensation of land at Harsaru, Gurugram, Haryana and claimed deduction on the same @50% u/s 57 of the Act while in the revised return the assessee ... shown this income of interest received on enhanced compensation during the year under consideration. The ld Revisional Authority observed that there was no entry of this amount either to show as income or to claim any deduction under any provisions in the revised return of income. It considered

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

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

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

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