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TMI Blog2014 (1) TMI 1727X X X X Extracts X X X X X X X X Extracts X X X X ..... ittal,J. 1. This order shall dispose of CWP Nos.2290 and 2292 of 2001 as according to the learned counsel for the parties, the issue involved therein is identical. However, the facts have been extracted from CWP No.2290 of 2001. 2. Briefly, the relevant facts as narrated in the CWP No.2290 of 2001 are that Duli Chand son of late Shri Mange Ram, father of petitioner Nos. 1 and 2 died on 12.5.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .1998 and 19.3.1999. While depositing the compensation amount, the Land Acquisition Officer, Urban Estate, Panchkula, respondent No.4 deducted Tax Deduction at source (TDS). Respondent No.4 had not issued certificate of TDS under Section 203 of the Income Tax Act, 1961. The petitioners requested the respondent authorities for refund of the amount of TDS but no response was received. Thereafter, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... demonstrate that the interest received was not for delayed payment of the enhanced amount of compensation. In such a situation, it would be taxable as it falls under Section 56 of the Act as income from other sources. 6. This Court in Commissioner of Income Tax, Faridabad v. Bir Singh (HUF), Ballabgarh, ITA No.209 of 2004, decided on 27.10.2010, after considering the judgment of the Hon'ble A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as 'income from other sources' in the year of receipt. 27. The interpretation aforesaid has the legislative acceptance by way of incorporation of Section 145A(b) and 56(1)(viii) w.e.f. 1.4.2010 by Finance (No.2) Act, 2009 whereby now irrespective of system of accountancy being followed by the assessee, the interest on enhanced compensation shall be taxable in the year of receipt." The judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash system of accountancy. In the present case, the interest received by the petitioner was on account of delay in making the payment of enhanced compensation. Such payment could not par-take the character of compensation for acquisition of agricultural land and, thus, was not exempt under the Act. Once that was so, the tax at source had been rightly deducted by the payer. 8. In view of the abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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