9911796707
TMI Blog2010 (12) TMI 460X X X X Extracts X X X X X X X X Extracts X X X X ..... notification dated 29.1.1990. The Collector gave award dated 21.1.1993 and compensation thereon was paid on 28.1.1993. On the date of award, land was agricultural in nature and by later notification dated 6.1.1994, the same was covered in urban limits of Panchkula. The Assessing Officer held that since possession was taken after notification, compensation was liable to be taxed as capital gain. However, the CIT(A) and the Tribunal upheld the plea of the assessee that on the date of possession, the land was agricultural land and compensation received was not liable to be treated as capital gain. 3. The revenue preferred appeal before this Court claiming following substantial questions of law:- "(i). Whether, on the facts and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les, 1963 and without giving any opportunity of being heard to the revenue before admitting and considering this evidence?" 4. While dealing with the appeal, this Court upheld the view of the Tribunal on the question of land being agricultural land and dismissed the appeal as only that question was raised during arguments. In the application now filed, it is pointed out that the revenue had also claimed question of liability of interest on enhanced compensation being liable to be taxed as income from other sources. Since the said issue was not dealt with, the order requires modification. 5. We have heard learned counsel for the parties. 6. In view of judgment of the Hon'ble Supreme Court in CIT v. Ghanshyam (HUF) [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed:- "......Section 28 of the 1894 Act applies only in respect of the excess amount determined by the court after reference under Section 18 of the 1894 Act. It depends upon the claim, unlike interest under Section 34 which depends on undue delay in making the award. It is true that "interest" is not compensation. It is equally true that Section 45(5) of the 1961 Act refers to compensation. But as discussed hereinabove, we have to go by the provisions of the 1894 Act which awards "interest" both as an accretion in the value of the lands acquired and interest for undue delay. Interest under Section 28 unlike interest under Section 34 is an accretion to the value, hence it is a part of enhanced compensation or consideration whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pensation awarded by the Court includes the additional compensation awarded under Section 23 (1A) and the solatium under Section 23(2) of the said Act. This award of interest is not mandatory but is left to the discretion of the Court. Section 28 is applicable only in respect of the excess amount, which is determined by the Court after a reference under Section 18 of the 1894 Act. Section 28 does not apply to cases of undue delay in making award for compensation See: Ram Chand and Ors. etc v. U nion of India and Ors. (1994)1SCC44. In the case of Shree Vijay Cotton & Oil Mills Ltd. v. State of Gujarat [1991] 1 SCC 262, this Court has held that interest is different from compensation. 24. To sum up, interest is different from compensation. H ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
