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TMI Blog2017 (2) TMI 510X X X X Extracts X X X X X X X X Extracts X X X X ..... compensation under Section 28 of the 1894 Act is liable to be taxed under Section 56 of the 1961 Act and is not covered by Section 45(5)(c). Section 45(5)(c) of the 1961 Act does not apply to the case before us for it was introduced by an amendment w.e.f. 01.04.2004. However, the judgement squarely applies even in respect of cases under Section 45(5)(b) as well for it is expressly observed that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble ITAT was right in law in directing that the interest on enhanced compensation, even when actually received by the assessee, shall not be assessed since the dispute is pending before the High Court and the amount has been released on furnishing of security? It is admitted that after this question of law was framed, the enhanced compensation under Section 28 of the Land Acquisition Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant contends to the contrary. 5. The judgement of the Supreme Court in Ghanshyam s case was considered by a Division Bench of this Court in an order and judgement dated 16.12.2010 passed in CMs-27928-29-CII-2010 in ITA-85-2010 titled as Commissioner of Income Tax Vs Shri Prem Singh. The Division Bench referred to several passages from the judgement of the Supreme Court in Ghanshaym s case and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this view of the matter, the interest component on enhanced compensation under Section 28 is liable to be taxed under Section 56 of the Act even when compensation is treated as agricultural income and is not covered by Section 45(5)(c) of the Act. We, thus, answer the questions in favour of the revenue and modify our order dated 05.07.2010 accordingly. The amount of interest on enhanced compensat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Supreme Court by the Division Bench of this Court is incorrect. We are, however, bound by the interpretation of the judgement of the Supreme Court in Shri Prem Singh s case. We, therefore, did not permit Mr. Bhan to elaborate on this aspect of the matter. The assessee s remedy, if any, is to challenge this order in the Supreme Court. 7. The question of law is, therefore, decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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