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TMI Blog2018 (10) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... not taxable in the hands of the assessee and in case, the interest is received under section 34 of the Land Acquisition Act, the same is taxable in the hands of the assessee. The assessee is directed to furnish complete details before the Assessing Officer and the Assessing Officer shall decide the issue after affording reasonable opportunity of hearing to the assessee. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purposes. - ITA No. 291/PUN/2017 - - - Dated:- 31-8-2018 - MS. SUSHMA CHOWLA, JM For The Appellant : Shri S. N. Puranik For The Respondent : Shri Jogesh Kamath ORDER PER SUSHMA CHOWLA, JM The appeal filed by the assessee is against the order of Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he compensation/enhance compensation totaling ₹ 97,68,423/- and the same is tabulated at page 4 of the assessment order. However, in the computation of income, the assessee had not offered the interest of ₹ 70,37,907/- for taxation under section 56(2)(viii) of the Act. The assessee was asked to furnish details of compensation and interest received. The assessee furnished the order of Joint Civil Judge (S.D), Latur dated 31.12.2009. As per the said order, the assessee had received enhanced compensation @ ₹ 20/- per Sq. ft after deduction 25% towards development and interest @9% per annum for the first year and thereafter, @15% of the per annum. The para 6 of the assessment order is reproduced as under : the amount payable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer held that the said interest should be taxable in the hands of the assessee and after allowing deduction under section 57(iv) of the Act, added sum of ₹ 35,18,954/- in the hands of the assessee. 5. The CIT(A) upheld the order of Assessing Officer in turn relying on the ratio laid down by the Hon'ble Supreme Court in the case of Bikram Singh Others Vs. The Land Acquisition Collector, 224 ITR 551 (SC). He also observed that the decision given in CIT Vs. Ghanshyam (HUF) (supra.) had not considered by the earlier Larger Bench Judgment. 6. The assessee is in appeal before us against the order of CIT(A). 7. The Ld. AR for the assessee stressed that perusal of the order of Joint Civil Judge (S.D), Latur, copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been laid down that in case interest is received under section 28 of the Land Acquisition Act, then said interest was not taxable in the hands of the assessee. However, in case the interest is received under section 34 of the Act then the said interest is taxable in the hands of the assessee. The Tribunal had also taken note of the order of CIT(A) in the said case by relying on the decision of Hon'ble Supreme Court in the case of Bikram Singh (supra.). The Tribunal has held as under: 10. The Commissioner of Income Tax (Appeals) while confirming the order of Assessing Officer has observed that the case of assessee is covered by the decision of Hon'ble Apex Court in the case of Bikram Singh Ors.Vs. Land Acquisition Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside the order of CIT(A) and remanded the issue back to the file of Assessing Officer to determine whether interest received was under provisions of section 28 or section 34 of the Land Acquisition Act. 11. Applying the same principle to the facts and issue in the present appeal, the plea of the assessee is that interest received on enhanced compensation is not taxable as the said interest was received under section 28 of the Land Acquisition Act. The said aspect is not clear from the perusal of the record and it is deemed fit to restore the issue back to the file of Assessing Officer for the limited purpose of verifying the claim of the assessee. In case the interest is received under section 28 of the Land Acquisition Act, then sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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