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TMI Blog2007 (2) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... amount already received, the same has attained finality and hence in view of the decision of Special Bench of the Tribunal in the case of Dy. CIT v. Padam Prakash (HUF) [ 2006 (9) TMI 222 - ITAT DELHI-E] the interest actually received has to be brought to tax. This ground is accordingly to be dismissed in all the cases. Denial of exemption u/s 54B r/w section 54H - HELD THAT:- Investment in the new agricultural land by the assessee in the name of their family members cannot be a bar for granting exemption u/s 54B/54H of the Act. So long as the consideration has passed from the consideration received on transfer of asset, deduction has to be granted considering the spirit of the provision. We accordingly hold that in view of the discus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ensation. 4. After considering rival submissions, we find that the contention raised by the assessee has no merits. The Assessing Officer was in specific information that the assessee has received enhanced compensation from HUDA in respect of land acquired which land belonged to the assessee herein. Since the same were not offered for taxation, the Assessing Officer was justified in assuming jurisdiction under section 147 of the Act by issue of notice under section 148 of the Act. This ground is accordingly to be dismissed in all the cases. 5. The next ground of appeal in all the cases relates to bringing to tax interest granted on enhanced compensation. It is the contention of the assessee that though the interest has been received, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecial Bench of the Tribunal in the case of Padam Prakash (HUF) ( supra) in para 28 held as under :- 28 Having held that as per sub-section (5) of section 45 of the Income-tax Act, enhanced or further enhanced compensation is to be taxed on receipt basis, as per scheme of sub-section (5) of section 45, we are of view that it does not make any difference whether compensation is received as per interim order or on certain conditions or without any condition. This simple answer follows from obvious and plain language. What is required to be considered is that compensation had been paid and received. If for any reason, it is subsequently reduced then assessment is required to be modified to take reduced compensation of income. Thus statu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e investment in the agricultural land for being used for agricultural purposes. It is intended to safeguard the interest of the agriculturist. If capital gain arises on account of transfer or compulsory acquisition of agricultural land, then rebate is provided if the sale consideration/compensation is used for the purchase of other agricultural land for the purposes of cultivation. Due to expansion of cities on account of commercialization and globalisation, agriculturists are forced to shift their agricultural holdings from towns or places near to towns to places in the interior. This section enables them to carry on agricultural activities by providing relief against chargeability to capital gain. 18. It is also well known that a holde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant himself. The crucial point to see here i as to whether the investment was made in the aforesaid assets or not. It was brought to my notice that ₹ 3,30,000 were invested in capital gain units and, therefore, this amount is entitled for exemption under section 54F. I would, therefore, direct the Assessing Officer to treat the amount of ₹ 3,30,000 also for the purpose of allowing exemption under section 54E. 20. We are inclined to agree with the above observations for the reasons given above. We, therefore, set aside the impugned order and restore the matter to the file of the Assessing Officer for examining whether ₹ 7,12,894 out of compensation receipt was invested in purchase of agricultural land. This question wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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