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“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
93
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

Krishan Kumar Yadav, Rewari vs. ITO, Ward-2, Rewari

In the result, appeal of the assessee is allowed

ITA 8417/DEL/2025[2020-21]Status: DisposedITAT Delhi20 Jan 2026AY 2020-21

Bench: Sh. Satbeer Singh Godaraita No. 8417/Del/2025 : Asstt. Year: 2020-21 Krishan Kumar Yadav, Vs Income Tax Officer, Bank Of Baroda, Circular Road, Ward-2, Rewari, Haryana-123401 Rewari, Haryana-123401 (Appellant) (Respondent) Pan No. Aabpy1644F Assessee By: Sh. I. P. Bansal, Adv. & Sh. Vivek Bansal, Adv. Revenue By : Sh. Manoj Kumar, Sr. Dr Date Of Hearing: 20.01.2026 Date Of Pronouncement: 20.01.2026 Order This Assessee’S Appeal For Assessment Year 2020-21 Arises Against The Cit(A)/Nfac, Delhi’S Din & Order No. Itba/Nfac/S/250/2025-26/1081822094(1) Dated 16.10.2025, In Proceedings U/S 147 Of The Income Tax Act, 1961 (In Short “The Act”).

For Appellant: Sh. I. P. Bansal, Adv. &For Respondent: Sh. Manoj Kumar, Sr. 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)

case of CIT vs. Ghanshyam HUF dated 16th July, 2009 relating to the taxability of interest received on 3 Krishan Kumar Yadav 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 ... assessment order with a direction to pass an order afresh after making requisite enquiries and proper verification with regard to taxability of interest on enhanced compensation. 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 6. The Ld. AR submitted that the assessment

Vimla Devi Thakran, Gurgaon vs. Income Tax Officer, New Delhi

In the result, appeal of the assessee is allowed

ITA 8305/DEL/2025[2017-18]Status: DisposedITAT Delhi19 Jan 2026AY 2017-18

Bench: Shri Satbeer Singh Godaraassessment Year: 2017-18 Vimla Devi Thakran, Vs. Income Tax Officer, I Tower, Ea-8, 6Th Floor, Tata Ward -43(2), Primanti, South City-Ii, New Delhi Sector-72, Gurgaon Pan: Agfpt4774R (Appellant) (Respondent) Assessee By Sh. S.K. Wadhwa, Ca Department By Sh. Manoj Kumar, Sr. Dr

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

Supreme Court in the case of CIT vs. 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 ... assessment order with a direction to pass an order afresh after making requisite enquiries and proper verification with regard to taxability of interest on enhanced compensation. 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 6. The Ld. AR submitted that the assessment

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)

Supreme Court in the case of CIT vs. 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 ... assessment order with a direction to pass an order afresh after making requisite enquiries and proper verification with regard to taxability of interest on enhanced compensation. 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 6. The Ld. AR submitted that the assessment

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

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. 3. That ... wrongly taxed interest enhanced compensation amounting to Rs.458584 on acquisition of agricultural land which is also exempt under Section 10(37) of the Income Tax Act being part of compensation. 4. That the AO has wrongly denied taxes paid at Rs.96890/-. 5. That the AO has wrongly famed assessment under

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)

jurisdiction u/s 263 of the Income-tax Act, 1961 [the Act, for short] and setting aside the issue of taxability of interest received on enhanced compensation of compulsory acquisition of agricultural land u/s 28 of the Land Acquisition Act, 1894. 4. We have heard the ld. DR and have perused ... that the assessee had received interest of Rs 82,88,672/- u/s 28 of the Land Acquisition Act, 1984 during the year on enhanced compensation for acquisition of land which was claimed as exempt in its return filed in response to notice u/s 148. The AO, in the reassessment proceedings

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)

Supreme Court in the case of CIT vs. 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 ... assessment order with a direction to pass an order afresh after making requisite enquiries and proper verification with regard to taxability of interest on enhanced compensation. 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 6. The Ld. AR submitted that the assessment

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)

noted delay of 129 days in the appeal which stand condoned. The sole issue that arises in the appeal is taxability of interest on enhanced compensation for Rs.11,16,597/-. 2. The assessee received interest on enhanced compensation u/s 28 of Land Acquisition Act of 1894 for Rs.22 ... Section 145B(1) with effect from 1st April 2010, the Legislature introduced a specific charging mechanism mandating that interest received on compensation or enhanced compensation shall be taxable under the head “Income from Other Sources”, and that such income shall be brought to tax on receipt basis. (ii) This amendment

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

Assessing Officer wherein an addition of amount of Rs. 1,66,05,363/- was made on account of amount received by the assessee as enhanced compensation alongwith the interest u/s 28 of the Land Acquisition Act, as income from other sources, whereas the enhanced compensation AMD interest received ... ground No. 2 is against the addition of Rs. 1,66,05,363/- made on account of amount received by the Assessee as enhanced compensation along with interest of the Land Acquisition Act under as ‘income from other sources’. 8. During proceedings before us, ld. Counsel for the Assessee made

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)

considered. A bare reading of Section 145-B (1) reveals that it says that the interest received by an assessee on any compensation or enhanced compensation, as the case may be, shall be deemed to be the income of the previous year in which it is received. However ... interest component which deals with income from other sources. In view of this discussion, it emerges that the interest granted on compensation or enhanced compensation awarded by MACT or this Court from the date of filing of the claim petition till the date of passing of the award or judgment

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)

Supreme Court in the case of CIT vs. 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 ... assessment order with a direction to pass an order afresh after making requisite enquiries and proper verification with regard to taxability of interest on enhanced compensation. 5. Aggrieved, the assessee is in appeal before the Tribunal and all the grounds relate thereto. 6. The Ld. AR submitted that the assessment

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)

files perused. 2. We notice at the outset that these three assessees instant four appeals raise a common substantive issue of assessment of their enhanced compensation under section 28 of the Land Acquisition 2 | P a g e ITA Nos.391/Chandi/2021, 424/Chandi/2021, 390/Chandi/2021 & 590/Chandi/2022 Act, 1894; amounting to Rs.89 ... Supreme Court in the case of CIT vs. 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

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)

files perused. 2. We notice at the outset that these three assessees instant four appeals raise a common substantive issue of assessment of their enhanced compensation under section 28 of the Land Acquisition 2 | P a g e ITA Nos.391/Chandi/2021, 424/Chandi/2021, 390/Chandi/2021 & 590/Chandi/2022 Act, 1894; amounting to Rs.89 ... Supreme Court in the case of CIT vs. 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

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)

files perused. 2. We notice at the outset that these three assessees instant four appeals raise a common substantive issue of assessment of their enhanced compensation under section 28 of the Land Acquisition 2 | P a g e ITA Nos.391/Chandi/2021, 424/Chandi/2021, 390/Chandi/2021 & 590/Chandi/2022 Act, 1894; amounting to Rs.89 ... Supreme Court in the case of CIT vs. 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

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)

files perused. 2. We notice at the outset that these three assessees instant four appeals raise a common substantive issue of assessment of their enhanced compensation under section 28 of the Land Acquisition 2 | P a g e ITA Nos.391/Chandi/2021, 424/Chandi/2021, 390/Chandi/2021 & 590/Chandi/2022 Act, 1894; amounting to Rs.89 ... Supreme Court in the case of CIT vs. 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

Dy. Commissioner of Income Tax, Pune vs. Dilip Motilalji Chordia, Pune

In the result, the appeal filed by the Revenue as well as

ITA 1486/PUN/2024[2017-18]Status: DisposedITAT Pune22 Dec 2025AY 2017-18

Bench: Dr. Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1486/Pun/2024

Section 143(2)Section 143(3)Section 250(4)Section 44ASection 96

invoking Section 96 are wholly absent. 10. Section 96 of the RFCTLARR Act provides an exemption from income-tax on compensation or the enhanced compensation received through an award under the same Act. The acquisition of land by a Municipal Corporation, often under local laws like the Maharashtra Regional Town

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)

grievance of the assessee is that the CIT(A) erred in confirming the action of the Assessing Officer in taxing the interest received on enhanced compensation of compulsory acquisition of agricultural land u/s 28 of the Land Acquisition Act, 1894. 4. We have heard the ld. DR and have perused ... dispute that the assessee received interest of Rs 33,03,628/- u/s 28 of the Land Acquisition Act, 1984 during the year on enhanced compensation for acquisition of land. The issue for adjudication is whether the interest received under section 28 of the Land Acquisition Act on enhanced compensation

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

view of Section 145B, such interest shall be taxable in the previous year in which it is received. The interest on compensation OR enhanced compensation shall be chargeable to tax only if the original or enhanced compensation is taxable. Thus, if compensation is exempt from tax, the interest payable ... that the assessee, was a non-filer for AY 2015-16. The case was reopened based on information that he had received interest on enhanced compensation related to land acquisition. He received 2 a total interest amount of Rs.23,33,187 from the Land Acquisition Officer, Panchkula. 3.1 Since

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

legal position of the case, Worthy CIT(A) has erred in upholding the action of Ld. AO in holding that the interest on enhanced compensation of Rs. 1,08,12,000/- awarded on compulsory acquisition of agricultural land is taxable. 3. That on facts, circumstances and legal position ... issued to verify the correctness of the particulars declared. During examination of the return, it was noticed that the assessee had received interest on enhanced compensation on compulsory acquisition of land amounting to Rs.2,16,24,000/- which she claimed as exempt in the return of income. The assessment proceedings

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

Appeal Centre has also erred both in law and, on facts in upholding an addition of Rs. 20,46,383/- of interest received on enhanced compensation on compulsory acquisition of agricultural land received u/s 28 of Land Compensation Act' 1894 and eligible for exemption ... declaring a taxable income of Rs. 4,26,650/- and claiming an exempt income of Rs. 86,60,631/-, which included enhanced compensation and interest thereon from the Land Acquisition Officer, Hisar. Crucially, the Assessee received interest income amounting to Rs. 40,92,765/- during the year, on which

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)

made a grave legal error in upholding the addition made by Ld. AO of Rs. 22,57,525/- with respect to Interest received on enhanced compensation(construed as Compensation) u/s 28 of Land Acquisition Act 1894 amounting Rs. 45,15,051/- without considering the decision of Hon’ble Apex Court ... Assessing Officer had made grave legal error in making addition to the total income of the assessee on account of Interest on enhanced compensation (construed as Compensation) u/s 28 of Land Acquisition Act, 1894 as Income from Other Sources instead of “Capital Gains”. 3. That the appellant graves leave